The proposed budget imposes a progressive tax scale reaching up to 22% on personal passive income, including interest from bank accounts, dividends, and proceeds from property sales.

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The Russian government proposed a 20% to 30% tax on excess corporate profits for mining and metallurgy companies producing iron ore, nickel, and gold.

Russia's budget deficit reached 5.8 trillion rubles ($72 billion) through August 2026, driven by high military spending, economic sanctions, and Ukrainian strikes on oil refineries, according to KSE.

Russia's draft budget imposes a 22% VAT on cross-border online retail, a 100-ruble charge per international parcel under 200 euros, and a 35% tax on dividend transfers to non-resident Type C accounts.

Macro-Advisory CEO Chris Weafer stated that Russia's budget is moving into a phase that primarily funds military operations at the expense of household costs and broader economic development.

Finance Minister Anton Siluanov stated that the draft budget fulfills social obligations while addressing tasks of the special military operation and achieving national development goals.

The Kyiv School of Economics reported that Russia will exhaust its financial buffers by early 2028 unless it implements additional tax increases or social spending cuts.

Russia's proposed draft federal budget allocates 17.1 trillion rubles ($202.6 billion) to national defense, representing over one-third of total federal expenditures.

Russia's liquid assets in the National Wealth Fund, including Chinese currency and gold, have dwindled to 1.7% of GDP.

The approved draft 2027-2029 budget requires a second reading, approval by the Federation Council, and a final signature from President Vladimir Putin to become law.

Combined with a 7.6% increase in security and policing, Russia's total security spending will reach 21.3 trillion rubles ($262.1 billion), or 44% of total government spending.

To offset rising military expenditures, the proposed 2027-2029 draft federal budget reduces spending on economic support and healthcare by 3%, social support by 6%, and housing and utilities by 8%.

Russian Transport Minister Andrei Nikitin proposed that Vietnamese carriers wet-lease passenger aircraft, including crews and maintenance, to Russian airlines as of October 2026.

Due to Western sanctions on spare parts, Russian airlines have cannibalized components from the seized fleet, which lack the certified maintenance histories required by international standards.

Following the February 2022 invasion of Ukraine, Russia passed a law allowing domestic airlines to re-register more than 400 foreign-leased Western aircraft rather than returning them.

Russia's aviation regulator Rosaviatsia is issuing its own parts certificates for cannibalized components, which are not recognized by European Union or United States aviation authorities.

Ukrainian drone strikes on Russian oil refineries have reduced fuel production, leading the Russian government to restrict aviation fuel exports as of October 2026.

Fuel rationing restrictions have been introduced at at least 26 major Russian airports, limiting fuel to the volume needed for a single flight at several locations.

Russian authorities are discussing a passenger levy of up to 500 roubles for domestic tickets and 1,000 roubles for international flights to fund domestic aircraft production.

Russia plans to increase its defense spending to 17.1 trillion roubles (more than £150bn) in 2027, representing a 27 percent increase from its original 2027 budget estimates

To fund its increased military budget, Russia plans to cut funding for social policy by 7 percent, education by 6 percent, and healthcare by 6.8 percent in 2027.