Russia plans to run budget deficits for the next three years with a combined shortfall of nearly 16 trillion rubles

The Russian government has proposed a draft federal budget for 2027-2029, projecting substantial budget deficits over the next three years. Prime Minister Mikhail Mishustin signed the order, according to TASS. The draft forecasts deficits of 5.5 trillion rubles in 2027, 5.1 trillion in 2028, and 5.3 trillion in 2029, accounting for roughly 2% of GDP each year.

The budget's main objectives include fulfilling social welfare commitments, supporting participants in the "special military operation," meeting defense and security needs, enhancing healthcare and education, and securing technological superiority. There is no indication in the government's press release of any planned reductions in social spending or increases in military spending.

The Finance Ministry submitted the draft budget to the government on September 24. It suggests raising the tax rate on passive income and imposing a 22% value-added tax on cross-border e-commerce purchases. The 2027 budget is expected to allocate record military spending of 17.1 trillion rubles. Meduza adheres to stringent journalistic standards, ensuring that this report is a direct translation from Russian, reviewed by an editor before publication. For any discrepancies, please contact reports@meduza.io.