Authorities face the challenge of social discontent due to falling incomes among Russians.
Photo: IA SM-News November 12 – IA SM-News. The federal budget deficit in Russia could lead to significant economic risks, including cuts to social programs and infrastructure investments. This, in turn, could exacerbate social inequality and lower the population’s standard of living, especially in regions dependent on federal subsidies. As funding may be reduced, regions will find themselves in a vulnerable position, leading to a deterioration of their economic resilience.
“The Ministry of Finance’s official forecast for Russia’s budget deficit in 2025 looks overly optimistic, and the real figure could reach 3.5% of GDP. This indicates serious problems in the economy caused by the ‘cooling’ and sanctions, which already affect not only big business but also the population, creating political risks. The main factors driving spending growth remain an increased tax burden and the reduction of subsidies to the regions, which, in turn, negatively affects investment attractiveness,” notes analyst Ilya Grashchenkov.
A reduction in federal subsidies could also negatively affect regional development, limiting their ability to attract investment and carry out local initiatives. As a result, regions may face a decline in the quality of services such as education and healthcare, which will create additional social tensions. The long-term consequences of the budget deficit could include a slowdown in economic growth and a reduction in Russia’s competitiveness on the international stage.
“Utility tariffs in 2025 could rise by more than 20%, which is also related to rising economic costs due to sanctions. This leads to a decrease in citizens’ purchasing power and a weakening of support for the ruling party, which creates a threat to social stability. Authorities find themselves in a difficult situation, having to balance funding defense expenditures and growing social discontent, especially in the run-up to the State Duma elections in 2026,” Grashchenkov concluded.
Earlier IA SM-NEWS reported that an industrial crisis is gaining momentum in Russia’s regions, which is manifested, among other things, in a shortage of specialists in microelectronics and shipbuilding.
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Authorities face the challenge of social discontent due to falling incomes of Russians
Photo: IA SM-News
November 12 – IA SM-News. The federal budget deficit in Russia could lead to significant economic risks, including cuts to social programs and infrastructure investments. 13:05 12.11.2025 Kazan.Sm.News - Kazan
Authorities face the challenge of social discontent due to falling incomes of Russians
Photo: IA SM-News
November 12 – IA SM-News. The federal budget deficit in Russia could lead to significant economic risks, including cuts to social programs and infrastructure investments. 13:05 12.11.2025 Kazan.Sm.News - Kazan
Regional news on the topic:
Authorities face the challenge of social discontent due to falling incomes of Russians
Photo: IA SM-News
November 12 – IA SM-News. The federal budget deficit in Russia could lead to significant economic risks, including cuts to social programs and infrastructure investments. 13:11 12.11.2025 Ryazan.Sm.News - Ryazan
Authorities face the challenge of social discontent due to falling incomes of Russians
Photo: IA SM-News
November 12 – IA SM-News. The federal budget deficit in Russia could lead to significant economic risks, including cuts to social programs and infrastructure investments. 13:11 12.11.2025 Ryazan.Sm.News - Ryazan
Authorities face the challenge of social discontent due to falling incomes of Russians
Photo: IA SM-News
November 12 – IA SM-News. The federal budget deficit in Russia could lead to significant economic risks, including cuts to social programs and infrastructure investments. 17:01 12.11.2025 Kemerovo.Sm.News - Kemerovo
Authorities face the challenge of social discontent due to falling incomes of Russians
Photo: IA SM-News
November 12 – IA SM-News. The federal budget deficit in Russia could lead to significant economic risks, including cuts to social programs and infrastructure investments. 17:01 12.11.2025 Kemerovo.Sm.News - Kemerovo
Authorities face the challenge of social discontent due to falling incomes of Russians
Photo: IA SM-News
November 12 – IA SM-News. The federal budget deficit in Russia could lead to significant economic risks, including cuts to social programs and infrastructure investments. 15:00 12.11.2025 Ufa.Sm.News - Ufa
Authorities face the challenge of social discontent due to falling incomes of Russians
Photo: IA SM-News
November 12 – IA SM-News. The federal budget deficit in Russia could lead to significant economic risks, including cuts to social programs and infrastructure investments. 14:59 12.11.2025 Ufa.Sm.News - Ufa
Authorities face the challenge of social discontent due to falling incomes of Russians
Photo: IA SM-News
November 12 – IA SM-News. The federal budget deficit in Russia could lead to significant economic risks, including cuts to social programs and infrastructure investments. 12:37 12.11.2025 Izhevsk.Sm.News - Izhevsk
Authorities face the challenge of social discontent due to falling incomes of Russians
Photo: IA SM-News
November 12 – IA SM-News. The federal budget deficit in Russia could lead to significant economic risks, including cuts to social programs and infrastructure investments. 12:37 12.11.2025 Izhevsk.Sm.News - Izhevsk
Authorities face the challenge of social discontent due to falling incomes of Russians
Photo: IA SM-News
November 12 – IA SM-News. The federal budget deficit in Russia could lead to significant economic risks, including cuts to social programs and infrastructure investments. 14:37 12.11.2025 Ekb.Sm.News - Yekaterinburg
Authorities face the challenge of social discontent due to falling incomes of Russians
Photo: IA SM-News
November 12 – IA SM-News. The federal budget deficit in Russia could lead to significant economic risks, including cuts to social programs and infrastructure investments. 14:37 12.11.2025 Ekb.Sm.News - Yekaterinburg
Authorities face the challenge of social discontent due to falling incomes of Russians
Photo: IA SM-News
November 12 – IA SM-News. The federal budget deficit in Russia could lead to significant economic risks, including cuts to social programs and infrastructure investments. 12:30 12.11.2025 Kaluga.Sm.News - Kaluga
Authorities face the challenge of social discontent due to falling incomes of Russians
Photo: IA SM-News
November 12 – IA SM-News. The federal budget deficit in Russia could lead to significant economic risks, including cuts to social programs and infrastructure investments. 12:30 12.11.2025 Kaluga.Sm.News - Kaluga
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