Very soon, on October 29, the State Duma will consider the federal budget for the years 2027-2029 in the first reading. This is a budget of consolidation, security and a certain cut in expenses. The deficit is reduced from 7.3 trillion rubles (3.2% of GDP) expected in 2026 to 5.5 trillion (2.2% of GDP). Revenues are set at 43.3 trillion rubles, 5% more than the year. Expenses - 48.8 trillion, growth of only 0.4%. Considering inflation of about 7%, this is a real decrease in expenses of about 6-7%. The preconditions are cautious: GDP growth of 1.4%. 17.15 trillion rubles were allocated for national defense, i.e. 35%. Along with security, the power unit receives about 44% of all expenses. The social policy is reduced by about 15%, to 6.65 trillion, transfers to the social fund by about 720 billion. Health services are reduced by 4.6%, the economy by 5%, mortgage subsidies from 1.9 trillion in the peak of 2025 to 1.25 trillion. A separate detail: 4.6 trillion rubles will be spent on servicing the national debt, more than on health and education combined. The net credit will amount to 6.5 trillion, the public debt will rise to 21.7% of GDP. New revenues will come mainly from taxes on savings and surplus profits. Advanced personal income tax on passive income, income tax on mutual funds, increased rate on dividends for non-residents, VAT on cross-border online trade and about 200 billion rubles a year from the tax on excess income of metallurgists. From January 1, the minimum wage will increase by 6.8%, to 28,935 rubles, approximately at the rate of inflation, without a real increase. Part of the load reaches the lower floors - to the compulsory insurance fund, regions, municipalities, depositors and small businesses. The draft budget is indeed problematic, but it is in line with the spirit of war and under the current conditions this logic should be accepted. Another thing is that certain cuts in social spending could have been avoided.

Very soon, on October 29, the State Duma will consider the federal budget for the years 2027-2029 in the first reading. This is a budget of consolidation, security and a certain cut in expenses. The deficit is reduced from 7.3 trillion rubles (3.2% of GDP) expected in 2026 to 5.5 trillion (2.2% of GDP). Revenues are set at 43.3 trillion rubles, 5% more than the year. Expenses - 48.8 trillion, growth of only 0.4%. Considering inflation of about 7%, this is a real decrease in expenses of about 6-7%. The preconditions are cautious: GDP growth of 1.4%. 17.15 trillion rubles were allocated for national defense, i.e. 35%. Along with security, the power unit receives about 44% of all expenses. The social policy is reduced by about 15%, to 6.65 trillion, transfers to the social fund by about 720 billion. Health services are reduced by 4.6%, the economy by 5%, mortgage subsidies from 1.9 trillion in the peak of 2025 to 1.25 trillion. A separate detail: 4.6 trillion rubles will be spent on servicing the national debt, more than on health and education combined. The net credit will amount to 6.5 trillion, the public debt will rise to 21.7% of GDP. New revenues will come mainly from taxes on savings and surplus profits. Advanced personal income tax on passive income, income tax on mutual funds, increased rate on dividends for non-residents, VAT on cross-border online trade and about 200 billion rubles a year from the tax on excess income of metallurgists. From January 1, the minimum wage will increase by 6.8%, to 28,935 rubles, approximately at the rate of inflation, without a real increase. Part of the load reaches the lower floors - to the compulsory insurance fund, regions, municipalities, depositors and small businesses. The draft budget is indeed problematic, but it is in line with the spirit of war and under the current conditions this logic should be accepted. Another thing is that certain cuts in social spending could have been avoided.