Russia Weighs Flat Spending and More Tax as War Strains Finances

Russia aims to hold federal spending flat next year while weighing tax hikes to help plug a widening budget gap as fiscal pressure from the war in Ukraine continues to mount.

The Finance Ministry is committed to keeping expenditures steady after consistent annual increases since 2022, when the invasion of Ukraine began, according to a person familiar with the discussions who asked not to be identified because the information isn’t public. Officials also have proposed raising value-added tax starting in 2026 and expanding the levy to a broader pool of taxpayers, a move could generate about 1 trillion rubles ($12 ...