Where Does The Road Paved with Tax Manoeuvres Lead? Increasing the tax burden in 2025 will not save the budget from a record deficit of 3% of GDP. Will it help in 2026?
The government’s attempt to reduce the 2025 budget deficit by raising taxes against a backdrop of falling oil prices and declining economic activity can already be described as a failure. Growth in non-oil and gas revenues began to shrink towards the end of the year, while shortfalls in oil and gas revenues increased. As a result, budget revenues were merely kept at last year’s level, which covers only 88% of actual spending this year.