Putin approves budget with record military spending

Russian President Vladimir Putin approved the state budget for the period 2025–2027, which places a heavy emphasis on the military expenses, reported "Reuters", BTA broadcasts.

According to the document published on the official website for legal acts of Russia, the budget will be the most classified in the country's history since the collapse of the Soviet Union.

Focus on the military and "special operation"

Increasing Defense Spending: The 2025 Budget foresees a 25% increase in military spending, reaching a record 13.5 trillion rubles (over $145 billion). Priorities: Main emphasis will be placed on the needs of the army within the “special military operation“ in Ukraine, as well as on support for the armed forces.

"The government recognizes that military needs will remain a top priority alongside social needs and technological development."

Secrecy and Budget Details

About 32.5% of spending in the draft budget is for national defense, compared to 28.3% in 2024, AP reports. One third of the funds will not be subject to public control, which strengthens the secrecy of the budget.

Fiscal sustainability

Despite the increase in spending, the Russian government claims that the draft budget is “balanced”. Forecasts include:

Deficit: It is expected to fall to 0.5% of GDP, down from 1.7% in 2024. Government Debt: Will remain below 20% of GDP in the next three years. The war in Ukraine

The war, which began in February 2022, has become the largest military conflict in Europe since World War II. According to the AP:

Ukraine relies on billions in aid from Western allies, but Russia's military continues to be larger and better equipped. In recent months, Russian forces have been making territorial gains in eastern Ukraine, pushing back Ukrainian troops.