Regional Budgets Of The Russian Federation Are Bursting At The Seams

The regions are under pressure from the Kremlin to cut social programs and spend money on the army.

Sequestration of local budgets has begun in most Russian regions: 67 subjects finished the first half of the year with a deficit, so the authorities are forced to cut spending - primarily on social programs and payments to army recruits. This was reported by the Ukrainian Center for Countering Disinformation.

The CPD noted that the main reason for the financial crisis is the war against Ukraine. Moscow has shifted a significant part of military spending to local budgets, which now pay for contracts with the Defense Ministry, compensation for the wounded and dead, maintenance of their families and funerals. At the same time, federal subsidies are constantly being reduced.

The Center's experts emphasize that as a result of this policy, regions are losing opportunities for development: instead of building schools, hospitals, and roads, billions of rubles are spent on the needs of war. The aggression against Ukraine not only drains Russia's economy, but also deprives the regions of financial independence, turning them into hostages of the Kremlin's decisions.

The Telegraph reported that the economic war is draining Russia faster than its army achieves success on the front. According to journalists, Russian dictator Putin has found himself in the most difficult situation of his entire reign.

The Defense Forces' point-blank strikes on oil refineries have effectively paralyzed the aggressor country's energy sector, and the Russian troops' summer offensive has failed. At the same time, the Russian military economy continues to operate at full capacity, which may indicate preparations for a new stage of escalation.

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