Russian President Vladimir Putin has approved a record-setting national budget for 2025, allocating unprecedented funds to bolster the country’s defence sector amid its ongoing conflict with Ukraine. The budget earmarks 13.5 trillion rubles ($126 billion) for military spending, marking a significant increase from previous years and reflecting Moscow’s prioritization of its war efforts.
The 2025 allocation accounts for 32.5% of Russia’s total government spending, underlining the strategic emphasis on defence. This figure represents a sharp rise from last year’s defence share of 28.3%, further emphasizing the Kremlin’s commitment to sustaining its military operations in what has become Europe’s largest conflict since World War II.
The surge in military expenditure highlights the shifting priorities in Russia’s financial planning. Reports indicate that combined spending on education, healthcare, social policy, and economic programs remains far below the allocations for defence and law enforcement. Observers have pointed to this imbalance as evidence of the growing strain that the Ukraine war has placed on Russia’s resources.
Despite the record-setting 2025 budget, Russia’s financial projections suggest a slight decline in defence spending over the following two years. Allocations drop to $114.9 billion in 2026 and $122.4 billion in 2027, indicating a potential shift in fiscal priorities as the Kremlin balances wartime expenses with broader economic considerations.
Russia’s parliament overwhelmingly approved the budget in late November, clearing the way for Putin’s formal endorsement. Lawmakers in the State Duma and Federation Council supported the aggressive spending plan, citing the necessity of maintaining national security and ensuring operational readiness in the ongoing conflict.
Since the war began in February 2022, both Moscow and Kyiv have faced immense economic and logistical pressures. The prolonged conflict has left Russia grappling with international sanctions and resource allocation challenges, while Ukraine continues to depend heavily on foreign aid to sustain its defences.
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