Russian President Vladimir Putin has indicated that the government is considering increasing tax to reduce budget deficit. In recent months, Russia’s economy has had a major impact on the restrictions of Western countries and expenses related to Ukraine War, which has increased fiscal pressure.

Addressing a government meeting in Moscow, Putin said that “new steps need to be taken to maintain the financial stability of the country.” He indicated that additional revenue can be raised by changing tax policies.

Experts say that if taxes are increased, it will mainly affect large industries and energy companies, as the government wants to avoid directly burden on common citizens. Russia’s economy is still heavy on the export of oil and gas, but the global market has reduced revenue due to demand and prices fluctuations.

The Finance Ministry had already warned that if additional resources are not collected, the deficit may increase further in the coming years. However, Kremlin claims that tax reforms will be implemented in such a way that the investment environment and employment are not negatively affected.

Economic analysts believe that tax growth may bring short -term relief to Russia’s economy, but in a long time economic diversification and increasing investment will be the real solution.