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Russia Has a Budget Problem. Borrowing Its Way Out Won't Be So Simple.

The rising cost of debt is helping push Moscow toward tax hikes and spending cuts that analysts say could weaken growth.

  • Russia's government debt is 19% of GDP, a concern for President Putin.
  • 2026 budget deficit reached 5.8 trillion rubles, surpassing planned amount.
  • High interest rates and sanctions limit borrowing options for Russia.

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