Putin reaches for cash with new taxes on miners and savers as war spending swells Russia’s deficit to $72 billion

Russia is looking for additional tax revenue as the financial burden of its invasion of Ukraine grows. President Vladimir Putin’s government is targeting miners and savers while military spending drives the country’s deficit to $72 billion.

The measures highlight the pressure facing state finances as the economy becomes increasingly oriented toward the military. With resources directed toward the war, civilian needs are taking a secondary position.

Military spending reshapes the economy

Russia’s fiscal position is being strained by the cost of maintaining the war effort. The expanding role of military spending has shifted the balance of the economy, leaving the government seeking new sources of revenue.

Taxes on miners and savers represent an effort to increase receipts from parts of the economy that can contribute to state funding. The move comes as the government manages a widening deficit while continuing to support its military priorities.

Civilian needs face greater pressure

The fiscal squeeze extends beyond the deficit itself. As public resources are increasingly directed toward military purposes, civilian needs are receiving less attention in the government’s spending priorities.

The growing deficit and pursuit of additional tax revenue underline the financial consequences of the war for Russia’s economy. They also show how military demands are influencing decisions affecting businesses, savers and the broader allocation of state resources.