"Russia plans to raise tax to fund its defence budget as oil revenues decline. Despite Western sanctions, Russia's military spending has fuelled its war economy. Three years into the war in Ukraine, growth is stalling, energy revenues are plunging, and the budget deficit is widening. To shore up state coffers, Russia is raising the value-added tax from 20 percent to 22 percent, among other measures."
"The Ministry of Finance says funds will mainly cover defence and security spending. The plan came a day after United States President Donald Trump said Russia was in big economic trouble, but is it? Can the United Kingdom's Labour Party deliver on its economic promises? Plus, will the Africa-US trade pact, AGOA, be renewed?"
Russia will raise the value-added tax from 20 percent to 22 percent to shore up state coffers. The Ministry of Finance says the additional revenue will mainly cover defence and security spending. Western sanctions have not prevented sustained military spending that has fuelled a war economy. Three years into the war in Ukraine, economic growth is stalling, energy revenues are plunging and the budget deficit is widening. The VAT increase is one of several measures intended to offset declining oil receipts. Questions remain about Russia's overall economic health, the UK Labour Party's ability to deliver economic promises, and the renewal of AGOA.
Read at www.aljazeera.com
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