The authorities still haven’t figured out how to find money for the war, so they decided to simply go beyond the budget

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The authorities still haven’t figured out how to find money for the war, so they decided to simply go beyond the budget. Private business and Russians will suffer. Alexandra Prokopenko on the regime’s financial erosion

The real problems of the Russian regime are not an elite split and not a drop in Vladimir Putin’s ratings, says Alexandra Prokopenko, a fellow at the Carnegie Berlin Center for Russian and Eurasian Studies. The real problems are far less visible and are tied to finances. Thus, at the beginning of June, the State Duma allowed the Finance Ministry to increase spending and expand public debt beyond the limits established by the budget law. The bill was passed with extreme speed: less than a week passed from its introduction to its final adoption, and all three readings took place in a single day. In her text for the Carnegie Politika project, Alexandra Prokopenko analyzes the consequences of this decision. Meduza is publishing this text in full.

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The authorities still haven’t figured out how to find money for the war, so they decided to simply go beyond the budget. Private business and Russians will suffer

Budget Gone, Debt Steps In

The Duma allowed spending and borrowing beyond budget limits.

The law ended where the war began.