Espreso. Global

Russia needs to raise taxes to sustain war against Ukraine

31 October, 2024 Thursday
14:58

Economists believe that Russia will have to raise taxes even more to finance its war against Ukraine

client/title.list_title

Reuters reported the information.

The measures already announced to increase revenues will not be enough to finance the country's sharply rising military spending.

“Russia's draft 2025 budget allocates about one-third of total expenditure, or 6.3% of GDP, to the military - the highest level since the Cold War. For the first time, the share of spending on defense will be double that of social spending,” the article says.

According to the outlet, the huge increase in military spending is causing an inflationary spiral in the Russian economy. Interest rates have risen to their highest level since 2003, and the ruble has fallen to a one-year low against the dollar.

“A major tax reform is expected to generate additional revenues worth 1.7% of GDP in 2025. Economists argue this will not be enough,” Reuters writes.

  • A report by the American Institute for the Study of War said that when the Russian economy reaches "overheating" due to the Kremlin's spending on new military personnel to replenish losses in the Russian army, Vladimir Putin will be forced to change the way he wages war against Ukraine.
Tags:
Read also:
  • News
2024, Saturday
9 November
14:56
Drone strikes at military training ground in Russia's Rostov region - Defense Express
14:25
Exclusive
Trump desperately wants Nobel Peace Prize - politician 
14:00
Updated
Ukrainian drones attack a chemical plant producing ammunition in Russia's Tula region
13:33
Exclusive
Russians end up surrounded: Ukrainian serviceman denies Russian propaganda on Kursk fighting
13:00
Review
Russian attack aftermath, Kursk battles intensify, advances near Chasiv Yar. Serhiy Zgurets' column
12:26
Russia aims to seize more Ukrainian territory before winter freeze - Estonian Intelligence
11:58
Advancing with airborne troops - analysts on Russian counteroffensive in Kursk region
11:00
Ukrainian Defense Forces eliminate over 1,600 Russian troops overnight
10:40
Russia attacks Ukraine with Shaheds, guided bombs, causing casualties in Odesa
2024, Friday
8 November
21:30
Exclusive
Freezing front line in Ukraine would be big mistake for U.S. - American publicist
21:10
Russian ballistic missiles strike critical infrastructure in Sumy, leaving two injured
20:55
Musk joined Trump's call with Zelenskyy - media
20:41
What’s behind Trump’s claim to end war in 24 hours
20:20
Ukraine, Russia exchange updated lists of prisoners of war
20:05
Exclusive
Defense Express refutes claims that Russian strategic aviation is ordered to “еxhale and relax”
19:45
Interview
Will Trump bow to Putin? This is nonsense - Polish lawmaker Kowal
19:29
War in Ukraine can be easily ended with Trump administration's approach - Erdoğan
19:10
OPINION
Putin at Valdai whines for meeting with Trump
18:50
114 combat engagements reported at Ukraine-Russia front line, 32 in Kurakhove sector
18:34
European Council extends military training mission for Ukraine by two years
18:15
Ukraine returns bodies of 563 fallen soldiers
17:56
Exclusive
Russian army advances up to 2 km daily in Donetsk sector - Ukrainian major
17:35
Russian drone strikes building in Kyiv where Estonian Ambassador lives
17:15
Xi Jinping warns Trump U.S. would "lose from confrontation" with China
16:56
Pro-Russian hackers ramp up cyberattacks after DPRK deploys troops to Russia, says Seoul
16:32
Russian Kh-69 cluster warhead missiles: new threat to Ukraine’s infrastructure
16:13
Elderly man killed, homes damaged in Russia’s latest attack on Ukraine’s Kherson
15:57
IKEA store operator Ingka Group sells last Russian asset
15:38
Russia bombs Kharkiv, Ukraine's second-largest city: civilian victims reported
15:17
Ukrainian police arrest international drug syndicate leaders, seize $20M in drugs
14:58
Review
Trump era: Kyiv Security Forum international overview
14:35
CO2 emissions in Ukraine rise by 180 million tons due to full-scale war
14:16
Exclusive
Putin's main goal is lifting sanctions — political expert
13:59
Exclusive
Russia starts using Shahed drones with thermobaric warheads — military expert Zgurets
13:39
Drones strike oil refinery in Russia’s Saratov, Ukraine allegedly behind attack
13:17
Ukraine to invite Russia to follow-up Peace Summit, but with conditions
12:58
OPINION
Zelenskyy's call with U.S. presidential election winner: dialogue with Trump is necessary
12:46
Russian forces intensify Kursk region assaults with strikes from within borders
12:28
147 clashes occur on Russian-Ukrainian front on Nov. 7 - General Staff
11:59
Review
Russia shifts drone warfare tactics, FPV drones become main tool in warfare. Serhiy Zgurets’ column
More news