Overview

• Russia’s Finance Ministry filed a “budget package” to the government that includes the 2026–2028 federal budget draft and tax and budget code amendments for review before submission to the State Duma.
• Tax proposals include lifting the standard VAT rate to 22% from 20% from January 1, 2026 if adopted, with the 10% reduced rate preserved for essential goods such as food, medicines and children’s products.
• The package moves to curb tax evasion and retarget relief: the VAT trigger for firms on the simplified regime would fall to 10 million rubles in annual revenue from 60 million, SME social insurance discounts would be narrowed to priority sectors, and contributions for underpaid executives would be calculated at least from the minimum wage; the investment tax deduction would be broadened within groups.
• Budget priorities center on guaranteed social obligations and defense and security, with more than 41 trillion rubles slated over six years for national projects, about 1.9 trillion for technological leadership initiatives, over 1 trillion in additional health funding, 4.6 trillion for roads in 2026–2028, and 182.3 billion for utility upgrades.
• Social and regional measures include a new annual family payment from 2026 for eligible households with two or more children and expanded, inflation‑indexed maternity capital, over 1.8 trillion rubles for these programs over three years, 1 trillion in regional infrastructure loans through 2030, and 230 billion this year to sustain expanded subsidized mortgages.