How putin justifies fiscal pressure through the war
Against the backdrop of the 2026 tax reform, which is expected to bring at least 2.3 trillion rubles ($30 billion) to the russian budget, putin claimed that citizens would supposedly “understand” tax increases if the funds were allocated to “defense.” In this way, the kremlin is preemptively justifying fiscal pressure with the war, directly shifting its cost onto the population.
▫️ In reality, the key changes — raising VAT to 22%, reducing benefits for small businesses, and introducing additional fees on equipment — will lead to higher prices. More than 1.2 trillion rubles ($16 billion) of new revenues will effectively be extracted from consumers’ pockets, causing accelerated inflation and a decline in living standards.
▫️ Notably, these statements are made alongside putin’s claims of “near full employment,” “low unemployment, and a “healthy economy.” Meanwhile, real “stability” is achieved not through development, but through mobilization, reduction of the civilian sector, degradation of education, and manipulation of statistics.
Once again, the kremlin masks economic problems with propaganda about “unity” and “support.” Tax increases are not a sign of economic strength, but a consequence of a war-drained budget and the regime’s inability to finance it without directly extracting funds from the population.
