Russia increases defense budget amid ongoing Ukraine conflict
- Russia's defense spending will rise to over $145 billion in 2025, accounting for 32.5% of the total budget.
- This increase comes as the country continues its military operations in Ukraine, reversing earlier plans to cut military spending.
- The budget reflects a prioritization of military resources over social needs, indicating the Kremlin's commitment to its military objectives.
In 2025, Russia plans to significantly increase its defense spending by 25%, reaching over $145 billion, which will account for 32.5% of its total budget. This decision comes amid the ongoing conflict in Ukraine, marking a reversal from previous intentions to cut military expenditures. The draft budget, submitted to the State Duma, indicates a focus on military resources, with a substantial portion allocated for personnel payments and military equipment. The increase in defense spending reflects the Kremlin's prioritization of military capabilities over social needs, as it aims to sustain its war efforts. The proposed budget also highlights a shift in economic strategy, moving away from reliance on oil and gas revenues, which are expected to decline in the coming years. This military-focused budget underscores the ongoing strain on the Russian economy due to the war, as the government anticipates a budget deficit of 0.5% of GDP in 2025. The implications of this budget reveal the Kremlin's commitment to its military objectives, even as it faces economic challenges and international scrutiny.