Russia’s decision to raise the value-added tax (VAT) rate from 20% to 22% has delivered a significant fiscal boost in its first half of implementation, generating an additional 426 billion rubles ($5.36 billion) for the federal budget.
Daniil Yegorov, head of the Federal Tax Service, confirmed the figure on Tuesday, noting that revenues from insurance contributions and personal income tax are also growing steadily at a 13% pace.
5% of GDP. The additional VAT revenue helps narrow the gap, though it does not fully cover the deficit, underscoring the continued pressure on public finances amid ongoing economic constraints.
The windfall comes as Moscow grapples with a substantial budget shortfall.
According to data from the Finance Ministry, the federal budget deficit for the first half of 2026 reached 5.73 trillion rubles ($75 billion), equivalent to 2.5% of GDP.
The additional VAT revenue helps narrow the gap, though it does not fully cover the deficit, underscoring the continued pressure on public finances amid ongoing economic constraints.
Beyond the VAT increase, Russia’s non-oil and gas revenues rose 16.3% year-on-year in the first half of 2026, reaching 14.96 trillion rubles ($197 billion).