Russian President Vladimir Putin has sanctioned a massive $126 billion defence budget for 2025, marking a record 32.5% of the nation's total government spending.
This allocation, equivalent to 13.5 trillion rubles, underscores Russia's escalating military focus amidst its ongoing war on Ukraine.
The new budget represents a $28 billion (three trillion rubles) increase from this year's previous high, accounting for over 6% of Russia’s GDP. Last year, 28.3% of total government expenditure was dedicated to defence, highlighting the growing prioritization of military needs over other sectors.
According to The Kyiv Independent, Russia's planned spending on defence and law enforcement now surpasses its combined allocations for education, healthcare, social policy, and the national economy. While the current focus is heavily skewed towards military expenditures, projections for 2026 and 2027 indicate a slight reduction, with budgets of $114.9 billion and $122.4 billion respectively.
The budget has already passed through Russia's State Duma and Federation Council, receiving legislative approval in late November.
The Russia-Ukraine war, the largest conflict in Europe since World War II, continues to exert significant pressure on both nations. While Russia’s military is larger and better equipped, the prolonged conflict has strained its economy and population.
High inflation and labor shortages have become pressing issues in Russia. In October, the Russian Central Bank raised interest rates to 21%, the highest in decades, in a bid to stabilize the economic situation.
Meanwhile, Ukraine, despite facing challenges in terms of manpower and resources, continues to receive substantial international support. Germany recently pledged over half a billion dollars in military aid scheduled for delivery in December.
However, uncertainty looms over the future of U.S. assistance to Kyiv, with President-elect Donald Trump set to take office. Trump’s administration could reshape the dynamics of Western support for Ukraine in the coming months.