Russia reduces social spending until 2028: where the billions will go.

Distribution of Russia's budget for 2026-2028

According to inkorr.com: According to the report from the Foreign Intelligence Service, the federal budget of Russia for the next three years anticipates a significant reduction in funding for social and regional programs. Instead, the funds that were previously spent on supporting the population will be redirected to the needs of the military-industrial complex and security forces.

Changes in the tax system and taxation for businesses

One of the main changes in the budget will be the increase of the basic value-added tax rate from 20% to 22%. Finance Minister Anton Siluanov confirmed that this will lead to price increases and intensify financial pressure on businesses. It is also planned to significantly lower the annual income threshold for transitioning to a simplified taxation system for small and medium-sized enterprises.

Impact on the aviation industry

Financial cuts are affecting many industries, particularly aviation. Russian airlines, which have lost access to new aircraft due to sanctions, may lose hundreds of passenger liners by 2030. The technical condition of the existing aviation fleet is also deteriorating due to limited maintenance capabilities. The international community has already taken note of this situation.

Planned changes in Russia's budget may lead to a redistribution of funding from social programs to the needs of the military-industrial complex and security agencies. The increase in value-added tax and changes in taxation for businesses may significantly impact the economic situation in the country, leading to higher prices and financial pressure on enterprises. Additionally, the aviation industry will also feel the negative consequences of budget cuts, which limit opportunities for technical modernization and aircraft replacement.