The budget totals 44.1 trillion rubles in spending, about $520 billion, with revenues at 40.3 trillion rubles and a 4 trillion ruble deficit.
Defense gets 12.9-13 trillion rubles ($166 billion), rising to 38 percent when including security and law enforcement. Social spending faces 353 billion ruble cuts, while VAT rises from 20 to 22 percent to boost revenues. Economists note risks from oil price drops and sanctions as the plan prioritizes security.
Russia’s 2024 military budget was approximately $149 billion, and the 2025 budget is projected to increase significantly by about 38% to 13.5 trillion rubles (about $166 billion).
This rise reflects a new post-Soviet high, with defense spending reaching 6.3% of Russia’s GDP, driven by the ongoing war in Ukraine and economic growth spurred by military-industrial expenditure. Some estimates suggest the total planned military expenditure for 2025 is 15.5 trillion rubles, equivalent to 7.2% of GDP, when factoring in additional war-related spending.
Key factors influencing the budget
War in Ukraine: A significant portion of the budget is dedicated to the war effort, including military operations and spending on occupied territories.
Russia’s economy has grown rapidly, partially due to increased military-industrial production, which has helped fund the growing military budget.
Russia has lost significant development in services sectors, oil and gas exports, banking, and
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