Russia has to increase domestic taxes, debt to fund expenditures - British intelligence

Russia has to increase domestic taxes, debt to fund expenditures - British intelligence

Russia is unlikely to achieve its target indicator of the 2024 Russian budget as laid down in the budget plan. It is possible that the Russian government will have to consider other policy measures to fund the intended expenditure.

That’s according to the British Ministry of Defense, Ukrinform reports.

"The Russian government has ambitious plans to increase expenditure by 26 per cent in 2024. This is reliant on optimistic expectations of revenues rising by 22 per cent, with oil and gas revenues expected to increase by almost 25 per cent," the ministry wrote on X.

However, according to intelligence analysts, the Russian government will need to reduce its contributions to the National Wealth Fund and increase domestic taxes and debt to fund its planned expenditure.

Read also: Zelensky: It is important to do everything for Ukraine to be able to defeat Russia

"These policies will almost certainly have adverse effects on the economy in the medium to long term by maintaining inflationary pressures or constraining future economic growth. The National Wealth Fund is ostensibly for the long-term economic welfare of the Russian people but is increasingly being used to fund its invasion of Ukraine, with the value of its assets falling 10 per cent in 2023," the British Ministry of Defense notes.

As Ukrinform reported earlier, the Russian industry will likely not be able to fully provide hardware and weapons systems for new army reserves despite their ability to maintain the current pace of combat operations.

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