After four years of war, Russia's economy is showing severe signs of distress mainly due to overwhelming military expenditures that have risen to 7% of GDP. This increment in military spending is insufficient to sustain a healthy economic growth rate, which plummeted to just 0.6% last year and is projected to worsen in the coming year. The continuous demands of the military efforts are presenting considerable challenges to maintaining a stable economic growth trajectory, compounding the overall financial pressures faced by the state.

The Russian government's budget plans are significantly impacted by a staggering 50% decline in revenues from oil and gas, two critical sectors that heavily fund the national budget. The article notes that while the government anticipated an increase in revenue from these sources for the current year, the early results from January show a dramatic drop, further complicating the budgetary outlook. As such, Russia is expected to run a high deficit yet again, which signifies a deviation from its planned fiscal strategy.

Moreover, these economic challenges are increasingly affecting the Russian populace and businesses. Many citizens are struggling to access loans, while large companies are facing difficulties in servicing their debts. The high inflation rate, over 7% last year, coupled with interest rates nearing 16%, makes financial stability increasingly elusive for average citizens, exacerbating the hardships faced by the population during this ongoing conflict.