Draft Federal Budget for 2027–2029: Priorities remain unchanged, but their funding increasingly depends on public debt

On October 29, 2026, key parameters of the draft federal budget for 2027–2029 were approved by the State Duma after the first reading. Revenues are expected to grow in line with GDP growth, while expenditures are projected to decline from nearly 21% of GDP this year to 19.1% of GDP in 2029. The budget will remain in deficit, but the deficit will hover around 2% of GDP. Overall, based on the parameters approved by the State Duma, it can be assumed that—given the significantly increased tax burden on businesses and the population, coupled with restrained spending growth—the budget is essentially passing the baton for stimulating economic growth to monetary policy led by the Central Bank of the Russian Federation.