Russia plans to raise tax to fund its defence budget as oil revenues decline.
Despite Western sanctions, Russia’s military spending has fuelled its war economy. Three years into the war in Ukraine, growth is stalling, energy revenues are plunging, and the budget deficit is widening.
To shore up state coffers, Russia is raising the value-added tax from 20 percent to 22 percent, among other measures. The Ministry of Finance says funds will mainly cover defence and security spending.
The plan came a day after United States President Donald Trump said Russia was in “big economic trouble”, but is it?
Can the United Kingdom’s Labour Party deliver on its economic promises?
Plus, will the Africa-US trade pact, AGOA, be renewed?