Russia’s federal budget expenditures are indeed increasing, including due to the occupation war in Ukraine, but this does not pose a major problem given the low level of public debt.

Russian dictator Vladimir Putin stated this during the Eastern Economic Forum in Vladivostok, Russian media reports .

“Yes, costs are rising,” the Russian ruler admitted.

He explained this by infrastructure development plans, spending on education and healthcare, as well as defense issues, including the war in Ukraine.

Putin said that to reduce the budget deficit, it is necessary to increase its revenues while avoiding raising taxes.

“I don’t mean increasing the tax burden, but simply increasing production efficiency and labor productivity,” he said.

At the same time, the Russian dictator said that he sees no problem in increasing the budget deficit, given the low level of Russia’s public debt.

“The government believes that this deficit can be increased because the level of our debt burden is low. And this guarantees the stability of the entire credit and financial system, including the budget system,” Putin added.

As reported, according to the Russian Ministry of Finance, the federal budget deficit of the Russian Federation in January-July 2025 reached 4.9 trillion rubles, which is 4.4 times more than on the same date a year earlier (1.1 trillion rubles).

At the same time, budget expenditures increased by 21% to 25.19 trillion rubles, and revenues by only 3% to 20.32 trillion rubles.

According to Reuters, the Russian government is preparing to raise taxes and cut spending in an attempt to maintain a high level of defense spending amid a slowing economy.

At the same time, the total defense and national security spending in the Russian Federation planned for 2025, at 17 trillion rubles, is the highest since the Cold War, accounting for 41% of total spending.

Author:  Mykhailo Orlyuk Джерело: https://censor.net/n3572442

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