The Russian Federation government has no other way, except to increase taxes and reduce social costs, experts say.
The Russian Ministry of Finance increased the forecast of the budget deficit of 2025 to 1.7% of GDP which had previously been expected 0.5% against a long period of low oil and gas prices. The forecast for oil and gas revenue reduced by 24% to 8.32 trillion rubles ($ 101.47 billion). The cost plan for 2025 increased by 830 billion rubles. This was reported by the Reuters News Agency.
Russia has increased state costs for the defense of 2025 to a quarter – up to 6.3% of GDP against the rear military invasion against Ukraine, which lasts for four years. It has become the highest level from the Cold War.
An increase of forecasts has been published on the eve of the long holidays – May 1 and 9, if most Russian residents are traveling out of town, and are likely to pay attention to the news.
Many experts believe that from now on the government will not have any other way, other than increase taxes, cut sensitive social costs and actively occupy funds if it wants to balance future budgets without reducing defense costs.
This year, some major taxes have been raised in Russia, including social sensitive income and income tax income taxes. Strong public finances helped Russia experience global crises, but in 2025 the situation was complicated by the growing cost of war against sanctions in Ukraine and the west.
The global economic backbone caused by trade wars reduces oil demand and pulled out prices – in April, the oil fell by more than 11%.
The Ministry of Finance changed the average oil price, laid out on a budget of 2025, up to 56 per barrel from the past $ 69.70 per barrel.
The Ministry of Economy of the Russian Federation also first published high -risk scenarios, according to which the trade wars caused by the US protectionist policy are a major threat to the Russian economy.
Within the framework of the negative scenario, Russia’s economic growth of 2025 is expected by 1.8%, compared to 2.5% in the main forecasting, which most economists consider. In 2024, the Russian economy rose by 4.3%.
As we have written, in 2024, Russia brought more than 60% of sea exports of shadow fleet tanks, specifically 78% of raw oil and 37% of oil products.
Russian Federation’s Shadow Fleet adds oil exports despite penalties – the media
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.