Russia’s three-year budget Tax proposals explained

Sep 24

Vremya's Anna Kurbatova reports the Cabinet's discussion of the draft 2027–2029 budget, with Mishustin emphasizing social commitments, defence and technology. The package gives revenue, expenditure, growth, inflation, pension, minimum-wage, utility and exchange-rate forecasts, and explains conservative oil assumptions under uncertainty over Hormuz. Siluanov describes proposed VAT on cross-border marketplace purchases, a parcel fee and bringing passive income into the broader progressive income-tax scale, while retaining stated exceptions. The draft is to be sent to the Duma by October 1. Budget approval at Cabinet level and the tax proposals remain separate developments; projections, proposed rates and future implementation are not completed results or enacted Duma legislation.

The Finance Ministry submits its three-year draft to the government, which discusses it on September 24. Vremya reports projected 2027 revenue of 43.3 trillion rubles and spending of 48.8 trillion, rising revenue through 2029, and an approximately 80% non-oil-and-gas share. Mishustin prioritizes social obligations, defense and technology; about 19 trillion rubles is earmarked for national projects. Proposed 2027 insurance-pension increases are 6.8% in February and 3.3% in April, with an average old-age pension of 29,904 rubles, subsistence minimum of 20,227 and minimum wage of 28,935. The package cites roughly 10 trillion rubles for families over three years and increased health funding. The economic forecast puts GDP growth at 1.4% in 2027 and 2.4% in 2029, inflation at 6.8% in 2026 and 4% by end-2027, and average utility-bill growth around 11%, varying by region. Officials describe a conservative $50 oil cutoff and gradual ruble weakening; these are assumptions and forecasts. The report also presents proposed tax changes. Duma submission is due by October 1; this is a draft, not an enacted budget. The September 27 weekly review describes the government's action during the week as approval of the draft and repeats the revenue, spending, family-support and national-project figures. It does not report parliamentary passage or enactment.