Russia plans to increase its defense budget by nearly 30% in 2025, allocating 13.5 trillion rubles ($145 billion) to military spending. This significant rise in defense expenditure is aimed at funding the ongoing military operation in Ukraine, as reported by AFP.
Moscow has ramped up its military spending to levels not seen since the Soviet era, rapidly supplying its army with missiles and drones while offering substantial salaries to hundreds of thousands of soldiers fighting on the front lines.
Defense and Security Priorities
According to the draft budget, published on the Russian State Duma’s website, defense and security spending will make up around 40% of Russia’s total government budget for 2025, which is projected to reach 41.5 trillion rubles.
Finance Minister Anton Siluanov emphasized that while social support remains a top priority, defense and security spending has taken precedence to support the “special military operation” in Ukraine and assist military personnel and their families.
Despite Russia’s focus on social investments and welfare, military expenditures are projected to more than double the allocations for social programs. Since 2022, the Kremlin has largely redirected the economy toward the war effort, particularly accelerating the development of the military-industrial complex by hiring thousands of new workers.
Historic Military Spending Growth
Russia’s national military budget saw a nearly 70% increase in 2024 compared to 2023, a surge that now accounts for 8.7% of the country’s GDP, according to President Vladimir Putin. This is an unprecedented figure in modern Russian history. The Ministry of Finance has affirmed that significant funds will be allocated to equip the armed forces with advanced military weapons and technologies, as well as to provide compensation and support to the military-industrial sector.
President Putin also signed a decree to expand Russia’s military personnel by 15%, raising the total number of soldiers to 1.5 million. This move indicates that military spending will continue to grow in the coming months.
To sustain this surge in defense funding, the Russian government plans to increase taxes on high-income individuals and businesses starting January 1, 2025. This tax hike will help finance the ongoing military operations in Ukraine and related expenses.
