The draft federal budget of Russia for 2026–2028 envisages a redistribution of resources from social and regional programs in favor of the military-industrial complex and security forces. In addition, the maintenance of the Russian dictator and his administration will again become more expensive and will exceed the annual budgets of regions such as Kalmykia or the Jewish Autonomous Region, UNN reports with reference to the Foreign Intelligence Service.
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According to intelligence, the Russian authorities plan to increase the VAT rate from 20% to 22%. Finance Minister Anton Siluanov admitted that this would lead to price increases and pressure on businesses. From 2026, a new tax system will be introduced for small and medium-sized businesses: the annual income threshold for the simplified system will be reduced from about $723,000 to $120,000, and preferential insurance contributions for IT companies will be abolished, increasing from 7.6% to 15%.
In addition, funding for 18 out of 51 state programs will be cut. The largest cuts are in expenditures for the programs "Chemical and Biological Safety" (–36%), "Development of the Aviation Industry" (–30%), and "Energy Development" (–29%). At the same time, appropriations for "Development of the Electronic and Radio-Electronic Industry" in the interests of the military-industrial complex will increase 4.4 times – to $2.2 billion in 2026.
Increased tax burden and reduced social spending indicate attempts by the authorities to curb the growth of military spending at the expense of the population. The Pension and Social Insurance Fund, which provides payments to 40 million Russian pensioners, will have a deficit of about $8.3 billion this year.
At the same time, the maintenance of Russian President Putin and his administration will again become more expensive, reaching $354 million in 2026 (approximately $1 million per day), which exceeds the annual budgets of regions such as Kalmykia or the Jewish Autonomous Region.
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