Russia's Finance Ministry submits 2027-2029 budget with 2% GDP deficit target

September 24, 2026 at 01:01 PM2 min

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Russia's Finance Ministry submitted its 2027-2029 budget package to the government on September 24, targeting an annual deficit of about 2% of GDP. The package includes tax code changes and measures to whiten the economy, with priority on defense, social support for war participants, and technological leadership.

Key Facts

The Finance Ministry submitted the budget package for 2027 and the planning period 2028-2029 to the government on September 24.
The annual budget deficit is planned at about 2% of GDP, with the base oil price set at $50 per barrel.
The so-called 'children's budget' for three years will amount to 10 trillion rubles, including about 1.9 trillion rubles for housing programs for families with children.
The package proposes extending the five-tier progressive personal income tax scale to passive income such as dividends and deposit interest, while exempting participants in the special military operation.
About 2 trillion rubles is allocated for national technological leadership projects, including 135.7 billion rubles for the 'Stanki' project and 103.3 billion rubles for unmanned aerial systems.

Budget Parameters

The Finance Ministry submitted the budget package for 2027 and the planning period 2028-2029 to the government on September 24, the ministry's press service reported. The budget is balanced, with an annual deficit planned at about 2% of GDP, according to the ministry. The base oil price in the draft budget is set at $50 per barrel, meaning excess revenues above this level will go to the National Wealth Fund. Finance Minister Anton Siluanov said the package includes a set of measures to prioritize spending, with resources concentrated on the most significant areas for the state and citizens.

Tax Changes

The draft includes amendments to the Tax Code aimed at increasing the sustainability of the budget system while maintaining fairness and efficiency of the tax system. The five-tier progressive personal income tax scale will be extended to passive income, including dividends, interest on deposits, securities transactions, and income from property sales and participation interests. Currently such income is taxed at rates of 13% and 15%, and the changes will not affect participants in the special military operation. The ministry proposes requiring mutual investment funds to pay profit tax on passive income at a rate of 15%, and raising the profit tax rate on dividends paid to non-residents on 'C' accounts to 35%.

Social and Infrastructure Spending

The so-called 'children's budget' for three years will amount to 10 trillion rubles, according to the draft budget for 2026-2029. About 1.9 trillion rubles is planned for programs to improve housing conditions for families with children. Almost 110 billion rubles is allocated for financing the construction of 150 schools by 2030, and more than 290 billion rubles for capital repairs of schools in 2026-2028. Over 4.4 trillion rubles is provided for road infrastructure, and 65.3 billion rubles for public transport renewal.