Russia’s Finance Ministry Submits 2027-2029 Federal Budget Draft

MOSCOW, September 24. /TASS/. Russia’s Finance Ministry has submitted a package of bills to the government, including the draft federal budget for 2027-2029, the bill on specifics of federal budget execution for the three-year period, and the bill amending the Tax Code to enhance the stability of the fiscal system, the ministry’s press service reported.

TASS has compiled the key details on the submitted documents.

Priorities

The budget’s strategic priority is to provide the financial backing for Russia’s defense and security needs, as well as social support for participants of the special military operation and their families, the report said.

The budget will make it possible to ensure the armed forces are equipped with weaponry and hardware, and defense enterprises are upgraded, according to the report.

Budget deficit

Russia’s federal budget deficit will amount to around 2% of GDP each year in 2027-2029.

Taxes and fees

The introduction of specific amendments to the Tax Code as part of the budget package aimed at enhancing the stability of the country’s budget system has been proposed.

To unify the taxation of individuals’ income at rates of 13-22%, it has been proposed to include passive income in the main personal income tax base.

The suggested unification will affect no more than 6% of the population with taxable income, amounting to around 4 million citizens.

The ministry has proposed raising the tax rate on dividends paid to non-residents into C accounts to 35%.

Setting a 22% VAT on cross-border e-commerce goods to be paid by online trading platforms has also been suggested.

Moreover, it has been proposed to introduce a customs fee of 100 rubles per parcel on goods for personal use valued at up to 200 euro shipped from abroad via mail.

The ministry has also initiated introducing a 30% tax on additional income generated by rising global commodity prices for certain mining and metallurgical companies.

Finance minister’s commentary

The draft budget will make it possible to meet all obligations of the state and maintain macroeconomic stability should any changes occur, Finance Minister Anton Siluanov was quoted as saying by the ministry’s press service.

The budget package includes a set of measures to prioritize spending, with resources focused on areas of greatest importance to the state and its citizens, he noted.

All measures in the budget package are aimed at ensuring the stability of public finances and creating conditions for the country’s long-term economic growth, according to Siluanov.