Key Points and Summary – Russia’s draft 2026–2028 budget signals mounting strain on war financing. Opposition economist Vladimir Milov flags seven straight years of >2% deficits and a 2025 shortfall raised to 2.6%, with official claims of later decline dismissed as unrealistic. -Sanctions have shut Moscow out of global capital; domestic borrowing and dwindling reserves […]

Last month, the Russian government released a draft of the proposed 2026–2028 federal budget, which purports to show the near-term priorities of President Vladimir Putin.

Vladimir Milov, a Russian opposition politician who left Russia after Putin’s February 2022 invasion of Ukraine, has released a pessimistic assessment of the former KGB lieutenant colonel’s chances of being able to continue to bankroll his war in Ukraine.

In his latest report for the Foundation, he projects rough times ahead for Moscow due to a series of unfavorable trends.

According to his analysis, Russia’s budgetary situation is anything but “normal.”

  • MrFinnbean@lemmy.worldEnglish
    16·
    22 hours ago

    That is not how economics work.

    If you wanna see extreme case search hyper inflation in Hungary after ww2. There was basically a time when every 15 hours price of everything doubled because the goverment just kept printing more money.

    • gandalf_der_12te@discuss.tchncs.deEnglish
      11·
      3 hours ago

      That is not how economics work either.

      Inflation is kinda irrelevant, what matters is the people’s buying power, i.e. how much they can afford to buy based on their wages.

      And the wages are determined on the labor market based on supply and demand: If there’s high demand for human workers, wages are higher.

      And demand for human workers largely depends on how much employment opportunities the state creates. Like, if the state just begins to randomly construct public transport and public infrastructure and more energy production sites and also clean water pipes and lots of other stuff, that creates construction jobs and drives up wages which means people can buy more stuff.

      That has literally nothing to do with how much money the government prints, and it doesn’t really matter if the cost of bread is $2 or $20 as long as your wages rise just as quickly.

    • queermunist she/her@lemmy.mlEnglish
      113·
      20 hours ago

      Supply and demand. As long as there is demand for Russian rubles, and there are as long as Asia trades with them, then inflation will be kept in check. Inflation is caused when supply outpaces demand.