This week the government will submit to the State Duma the budget for 2027, the sixth year of the war. And although none of the wartime budgets were executed as planned, it says a lot about the plans of the authorities and the state of the economy. Despite its stagnation, the Kremlin continues to increase military spending at a pace that should remove any doubt about the seriousness of its intentions.

“It is better to stand for high growth rates than to sit for low ones,” this dark joke is attributed to Stanislav Strumilin, a theorist and practitioner of planned economy, co-author of five-year plans during the industrialization of the USSR. Thanks to this position, Strumilin lived until 1974, and did not perish in the camps. Economics is a rational science: profits are maximized, costs are minimized, so many of Strumilin’s colleagues did everything possible so as not to sit.

When discussing the state of Putin’s economy and finances (“Important Stories” told about growing problems that are still far from critical), they most often mean data for the entire country and the federal budget. But there is the next, very important level - regions. Their budgets taken together make up approximately half of the federal budget, which pays salaries for doctors and teachers, “increases” for contract workers, and supports housing and communal services.

The budget is perhaps the most important state document for the economy and for the entire life of the country. Its expenditure accounts for approximately 20% of GDP, so you can understand a lot by “following the money.” The budgets of the war years had been formed using a simple principle, articulated by Finance Minister Anton Siluanov in late 2023 as “budgets of victory.” Every year, an increase in spending (primarily defence) would be planned. But the war would require more and more money.

The budget is perhaps the main document for the economy, and indeed for the life of the entire country. Its spending amounts to approximately 20% of GDP, and “following the money” can tell a lot.

Russia has money to continue military operations, but it becomes less Peter Sarukhanov / "New Gazeta" Despite the sanctions, the Russian economy grew according to the results of 2023. But civilian consumers will not feel this: the budget and the whole economy were reoriented to supply the front. Military operations turned out to be expensive: the state spends reserves on them and increases taxes for them.

The economy of Russia contrary to all forecasts not only grew, but also played last year's decline. You might think, she’s nothing to her: neither sanctions, nor spending on war. This, of course, is not so, and the outgoing year began to clarify it. Again a deuce Killer orders a wreath for a friend's funeral. - What to write on a ribbon? - "Sorry, bro, the mistake came out." Everything goes to the fact that, according to the results of the year, GDP will grow by at least 3%.

The Holodomor is one of the largest humanitarian disasters of the twentieth century: in just two years-from 1932 to 1933-from hunger from 5.8 million inhabitants of the Soviet Union were killed, of which 2.6–3.9 million were in Ukraine.