The Kremlin is seeking additional funds for the war in Ukraine by raising taxes, as the federal budget deficit reached 5.8479 trillion roubles (€60.4 billion) in the first half of the year, according to official data.
By the end of July, the budget deficit amounted to 2.8% of annual GDP, almost twice the initially planned annual figure.
The volume of funds in Russia’s reserve fund has fallen to 1.6% of GDP, forcing the Kremlin to borrow from domestic banks.
At the same time, GDP growth has slowed compared with the peak rate of more than 4% year on year recorded in 2023–2024.
According to government forecasts, growth this year will be 0.6%, with…
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