Failure of the Russian budget: key tax revenues are rapidly falling due to war and sanctions - CPD

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A month before the end of 2025, Russia recorded a significant failure of tax revenues, which deepens the financial crisis. Oil and gas revenues, VAT, and excise taxes have significantly decreased, and the budget deficit has reached record levels.

The Center for Countering Disinformation at the National Security and Defense Council reported that a month before the end of 2025, Russia recorded a significant failure of tax revenues for the main budget items. The agency emphasizes that the financial crisis in the Russian Federation is deepening and covering all levels of the budget system. This is reported by UNN.

Details

According to the CPD, oil and gas revenues fell by 21%, import VAT by 24%, import excises also by 24%, and import duty revenues decreased by 19%. The worst dynamics are observed for the recycling fee - minus 44% of the plan.

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As a result, the deficit reached record levels both in the regions and at the federal level. The CPD predicts that next year the gap between revenues and expenditures will only grow.

The reasons for the fall in revenues are a sharp increase in war expenditures and losses from sanctions, which continue to narrow the channels of Russia's foreign trade. According to analysts, increased tax pressure is no longer able to compensate for the scale of the failure, and the economic crisis in Russia will only deepen.

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