The draft budget of the Russian Federation for 2026 includes a record increase in expenses for supporting the activities of President Vladimir Putin and his administration. According to the document, funding for this item will reach 32.917 billion rubles, which translates to monthly expenses of 2.74 billion rubles (approximately 33.4 million dollars).
This is reported by Finway
Comparison with Previous Years and Regional Budgets
Compared to the current year, when 30.926 billion rubles are allocated for Putin’s maintenance, this amount will increase by almost 2 billion. For comparison, the annual budget of many Russian regions is smaller: in Kalmykia – 28.8 billion rubles, in the Jewish Autonomous Region – 24.2 billion rubles.
In the coming years, the trend of increasing expenses will continue. In 2027, 33.726 billion rubles are allocated for the funding of the president and administration, and in 2028 – 34.632 billion rubles. Additional funds in 2026, amounting to 1.511 billion rubles, will primarily go towards increasing salaries for presidential administration staff. Another approximately 500 million rubles are earmarked for the purchase of goods, works, and services for the needs of the Kremlin.
Budget Deficit and Tax Changes
In 2026, the expenses of the Russian budget will increase by 1.2 trillion rubles, reaching 44 trillion. At the same time, revenues will amount to only 40.3 trillion rubles. Thus, a deficit of 3.7 trillion rubles will form in the state budget, which will be a record for the country since the pandemic. To cover it, the government plans to raise the VAT rate from 20% to 22%, as well as significantly change the tax system for small businesses by lowering the threshold for the simplified taxation system from 60 million to 10 million rubles of annual income.
“Total budget expenses, according to the draft, will increase next year by 1.2 trillion rubles, to 44 trillion. At the same time, revenues will be 40.3 trillion. As a result, there will be a ‘hole’ in the treasury of 3.7 trillion rubles,” the publication reported.
Expenses for maintaining the State Duma, Federation Council, and government will also increase.
Military Spending and Economic Situation
A significant portion of the Russian budget continues to be spent on the war: estimates show that in the first quarter of the current year, 50.1% of tax revenues were directed towards military needs, and by the end of the second quarter, it was 48.2%.
For the first time since the beginning of the full-scale invasion of Ukraine in February 2022, the military budget of the Russian Federation has been reduced. This indicates that the Kremlin’s financial capabilities for conducting the war have reached their limits. The draft budget for 2026 includes a reduction in defense spending from over 163 billion dollars to approximately 156 billion dollars.