Russia approved amendments to its 2026–2028 federal budget and Tax Code on 6 November 2025, reallocating over RUB 7 trillion to national projects, defence, healthcare, and infrastructure, while introducing new tax measures for businesses and individuals.

RF Report

The Russian Government has approved a wide-ranging package of amendments to the draft federal budget for 2026–2028 and to the Budget and Tax Codes for the second reading on 6 November 2025.

The revised proposals, presented by Finance Minister Anton Siluanov, outline the redistribution of over RUB 7 trillion to bolster defence and security, advance national projects, strengthen healthcare and infrastructure, and introduce new tax measures for businesses and individuals.

Budget Amendments

The proposed changes are divided into three key areas:

  1. National projects and reallocation of reserved funds

Around RUB 300 billion will be redirected to several national projects:

  • Infrastructure for life: RUB 75.5 billion for regional road upgrades, improving 700 km of roads and funding 22 transport projects; another 32 billion roubles for public transport renewal and the purchase of over 5,000 buses.
  • Youth and children: RUB 15.6 billion for new university campuses — Arctic Star in Arkhangelsk region and the Interuniversity Campus in Tyumen.
  • Data economy and digital transformation: RUB 44.6 billion r for new state-owned communication and broadcasting satellites in geostationary orbit.
  • Development of space activities: RUB 5 billion for purchasing high-resolution Earth observation data.
  • Production tools and automation: RUB 3 billion  in subsidies to support Russian manufacturers, enabling the sale of over 50 machine tools and 140,000 tools.
  • Unmanned aerial systems: RUB 2.6 billion to boost the technological independence and competitiveness of domestic UAV systems.

 2. Allocation of funds after regulatory approval

  • RUB 35 billion for medicines to treat 14 rare high-cost diseases, covering 190,000 patients annually.
  • RUB 20 billion for vaccines under the National Immunisation Schedule, funding over 140 million doses each year.
  • RUB 9.5 billion for tuberculosis and HIV treatment.
  • RUB 9.6 billion  for repairing 190 km of regional and local roads.
  • RUB 15 billion to improve the reliability of power grids in key regions, including the North Caucasus, Northwest, and Southern Federal Districts.

3. Redistribution within state programmes and non-programme areas

  • RUB 35 billion for the socio-economic development of the Donetsk, Luhansk, Zaporizhzhia, and Kherson regions.
  • RUB 15 billion  for the Circle of Kindness foundation to treat children with rare diseases.
  • RUB 9 billion for research and development in advanced technologies.

In 2026, regional support will include 263 transfers worth RUB 3.6 trillion, with 11 additional transfers added through the amendments.

Tax Code Amendments

The revised Tax Policy Implementation Bill incorporates business proposals and presidential directives. Key measures include:

  • Gradual reduction of income thresholds for simplified tax systems: RUB 20 million (2026), 15 million (2027), 10 million (2028).
  • Continued use of the patent system for stationary trade and freight transport.
  • Permission for small businesses newly registered for VAT to opt out once from the reduced rate in their first year.
  • Extension of VAT exemptions for Russian software sales and expansion of reduced insurance contribution eligibility for radio-electronic industries.
  • Empowering regions to set their own investment tax deductions.

Tax Relief for Individuals

Proposed personal tax benefits include:

  • PIT exemption for participants in the Rural Coach programme receiving one-time payments.
  • Transport tax exemption for Heroes of Russia.
  • Property and land tax exemptions for residents of areas affected by emergencies or counter-terrorist operations.
  • Uniform treatment of interest income, subject only to personal income tax, excluding it from the taxable base for entrepreneurs under special tax regimes.

International Taxation

The amendments also extend certain provisions to mitigate the impact of suspended double taxation agreements, supporting businesses operating internationally.

Earlier, Russia’s State Duma Committee on Budget and Taxes began reviewing the draft federal budget for 2026–2028. The announcement was made by the Russian Ministry of Finance on 13 October 2025.