Russia plans to significantly boost defense spending to 13.2 trillion rubles ($142 billion) by 2025, representing 6.2% of GDP. This increase comes as the war in Ukraine continues with no clear end in sight. Defense and national security spending are projected to make up 40% of total government expenditures in 2025, surpassing allocations for education, healthcare, social policies, and the national economy. Additionally, 30% of the 2025 budget is allocated for classified or unspecified items, indicating a high level of military-related spending.
Despite the surge in defense spending, the 2025 budget is expected to have a deficit of 0.5% of GDP, down from 1.7% in 2024, due to projected tax hikes, a progressive wealth tax, and increased non-oil and gas revenues. The draft budget for 2025-2027 is set to be submitted to lawmakers, with efforts to balance the budget without incurring a significant deficit. President Vladimir Putin has listed defense spending and the integration of occupied Ukrainian territories among the top priorities for the upcoming budget, indicating a strong focus on military expenditures in the coming years.
Analysts suggest that even after the war in Ukraine ends, Russia will need to maintain higher-than-average levels of defense spending for several years to rebuild its armed forces. Military experts estimate that it may take up to 8 years for Russia to fully rebuild its military capabilities. The continued focus on defense spending reflects the ongoing security challenges faced by Russia and the need to strengthen its military capabilities. The proposed budget allocations indicate a long-term commitment to bolstering the country’s defense capabilities and maintaining a strong military presence.
The significant increase in defense spending is part of Russia’s strategic plan to modernize its armed forces and enhance its military capabilities. The high level of defense expenditure as a percentage of GDP reflects the government’s prioritization of national security and defense in response to ongoing security threats and geopolitical challenges. The proposed budget allocations signal a sustained investment in military modernization and readiness to address evolving security risks and enhance Russia’s strategic position on the world stage.
The draft budget proposals for 2025-2027 highlight the government’s commitment to strengthening Russia’s defense capabilities and maintaining a robust military posture in the face of growing security challenges. The planned increase in defense spending, coupled with efforts to reduce the budget deficit through tax reforms and increased revenues, underscores the government’s determination to prioritize national security and defense amidst ongoing geopolitical uncertainties. The projected budget figures reflect a strategic approach to enhancing Russia’s military capabilities and ensuring its readiness to defend its interests in a complex and volatile global security environment.
