Russia's Economic Slowdown: New Taxes & Budget Deficit

Russias economy, once buoyed by military spending, is now facing a slowdown due to decreasing oil revenues and a growing budget deficit. The Kremlin is turning to ordinary citizens and small businesses for more money, leading to increased taxes and fees. This economic shift, coupled with higher food prices, is causing concern among Muscovites, particularly those with lower incomes. The governments decision to raise car registration costs, mainly affecting expensive imported vehicles, is also expected to lead to a short-term decline in car sales. The budget deficit has been revised upward, and while the value-added tax increase may initially boost prices, it could help control inflation in the long run.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.