The kremlin Is Spending Like There’s No Tomorrow: the Budget of the rf Went into the Red in Seven Months by 6.46 Trillion

The kremlin’s war against its own economy has reached a new level: in the first seven months of 2026, the russian budget deficit has steadily ballooned to 6.46 trillion rubles. In July alone, the deficit increased by another 724 billion. While russian generals are effectively squandering trillions from the budget on Ukrainian battlefields, state budget expenditures have ballooned to 28.6 trillion rubles.

Even the conflict between the USA and Iran, on which russia had pinned great hopes, did not help – oil and gas revenues plummeted by 17%. The national wealth fund’s reserves now hold a meager 3.69 trillion rubles in liquid assets – enough, if anything, for a couple of months of actively purchasing Chinese motorcycles for assault troops.

Since it’s no longer possible to milk the oil well, putin’s economists have switched to “milking the submissive people” mode. The main intrigue of the autumn is the new budget, into which yet another financial noose is being woven. Following last year’s hike in the corporate income tax to 25%, russians are being treated to yet another “bonus” – a new tax increase. The only question is the percentage.

At the current pace, it will become increasingly difficult for the ministry of finance to maintain the current level of spending, while  tax hikes will inevitably lead to an even more pronounced slowdown in the aggressor nation’s economy than is currently the case.