Russian authorities are preparing a new round of tax increases as the country's federal budget deficit reached 6.46 trillion rubles in the first seven months of 2026, according to the Foreign Intelligence Service of Ukraine.
The budget shortfall expanded by 724 billion rubles in July alone, driven by surging state expenditure and falling energy revenues. Russian government spending between January and July reached 28.6 trillion rubles, while oil and gas revenues shrank by 17 percent.
Ukraine's intelligence agency reported that even higher crude prices linked to the conflict between the United States and Iran failed to meaningfully boost Moscow's treasury. Meanwhile, liquid reserves in Russia's National Wealth Fund, a sovereign wealth fund used to cushion economic shocks, dropped to approximately 3.69 trillion rubles.
Tax burden and economic slowdown
Following an increase in the corporate profit tax to 25 percent in 2025, officials in Moscow are now drafting further tax hikes into the upcoming autumn budget. Ukrainian intelligence stated that Russian citizens face another tax increase, with only the exact percentage remaining under discussion.
The Foreign Intelligence Service assessed that the Russian Finance Ministry will find it increasingly difficult to sustain spending at current levels. It warned that raising tax rates risks slowing the national economy even further.
Russia's economy has already ground to a near standstill, with gross domestic product growing by just 0.2 percent over the first five months of 2026. Russian President Vladimir Putin has called for measures to stimulate investment, but major Russian corporations are instead cutting capital spending due to declining profits, high borrowing costs, and economic uncertainty.
Gold reserves sold to cover shortfall
To help plug the deficit, the Central Bank of Russia has sold gold from its reserves for six consecutive months. The federal budget deficit reached nearly 6 trillion rubles during the first half of the year.
In June, the central bank reduced its gold holdings by an additional 9.33 tonnes, bringing total sales since the start of the year to 43.5 tonnes. Russia maintains the fifth largest national gold reserve in the world.
