Russia’s proposed tax increases for corporations and the wealthy could bring in an additional $30 billion to the country’s budget revenues the following year, allowing Moscow to increase spending without jeopardizing fiscal stability.

The finance ministry claims that these taxes are reasonable and aimed at the wealthiest citizens of Russia, aiming to address societal issues, lessen inequality, and promote regional development.

The adjustments will take care of President Vladimir Putin’s promises to spend more than 11.5 trillion roubles ($128 billion) on social and infrastructure projects during his next six-year term, all without changing Russia’s budgetary regulations.

In 2024, 36.6 trillion roubles will be spent overall on the budget, more than twice as much as in 2019.

The proposed revisions to the income and company tax will focus on non-oil and gas earnings, ensuring that neither the National Wealth Fund (NWF) nor Russia’s budget rule would be affected.

The tax rises are considered the “most balanced” solution to address the budget’s growing need for additional funding since 2022, especially since the NWF has been virtually depleted.