“Russian defense spending is expected to grow even more in 2025 and will account for 32% of total budget spending”, — write: www.radiosvoboda.org
As the ministry notes, citing its intelligence, the IMF forecasts average annual inflation at 5.8% in 2024 (down from a peak of around 20% in 2022), with defense spending expected to account for around 60% of government spending in 2025. expenses of Ukraine.
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According to British intelligence, the Russian economy is likely to grow by around 3.6% in 2024, a continuation of the upward trend after the first economic shock caused by the war in 2022.
“This growth will most likely be caused by government spending, in particular, on the military-industrial complex (MIC). However, economic growth is forecast to slow in 2025 due to inflation, labor shortages and sanctions. Russian defense spending is expected to increase further in 2025 to 32% of total budget spending, while other areas of the budget, such as social spending, will experience cuts,” the report said.
In the British intelligence, it is noted that in the Russian Federation, the increase in public spending will most likely increase the existing inflationary pressure in the economy, the average annual inflation rate in 2024 is forecast at the level of 7.9%.
Last week, the Verkhovna Rada of Ukraine approved the state budget for 2025. The document envisages record expenditures at the level of 3.94 trillion hryvnias, of which defense expenditures amount to 2.22 trillion hryvnias.
On November 21, the Russian State Duma adopted the law “On the federal budget for 2025 and for the planning period of 2026-2027.” The project envisages that in 2025, 13.5 trillion rubles (or 6.31% of Russia’s GDP) will be allocated to military expenditures under the “National Defense” heading. This is a record military expenditure in the modern history of Russia.