Free Republic

Russia's proposed tax hikes for companies and the wealthy, which may add an extra $30 billion to next year's budget revenues, will allow Moscow to further ratchet up spending, including on its war in Ukraine, without compromising fiscal stability. The finance ministry insists the tax hikes, proposed on Tuesday, are fair and target Russia's wealthiest. It says tax changes should solve national problems, reduce inequality and help develop Russia's regions. The changes will cover President Vladimir Putin's more than 11.5 trillion roubles ($128 billion) in infrastructure and social spending pledges for his new six-year term, analysts say, without requiring a...

Russian authorities are facing some unpalatable options as they try to keep the economy afloat - unless they can persuade President Vladimir Putin to curb massive military spending. Officials fear that without limiting the defence budget, the government will have to raise taxes, increase the pension age or print money to prevent the state deficit from running out of control. Despite a crisis brought on by diving oil markets and Western sanctions, they believe Russia can muddle through next year provided the price of crude, its dominant export earner, holds near current levels. But even at $60 per barrel, the...