“The Russian government plans to further increase defense spending in 2025, although Kremlin officials appear to emphasize the planned social spending while avoiding discussion of the increase in defense spending.”, — write: www.pravda.com.ua
The Russian government plans to further increase defense spending in 2025, although Kremlin officials appear to emphasize the planned social spending while avoiding discussion of the increase in defense spending.
Source: Institute for the Study of War (ISW)
Details: The Russian Cabinet of Ministers approved the draft federal budget for 2025-2027 on September 29 and will submit it to the State Duma by October 1. The draft budget states that Russia’s federal revenues are expected to grow by almost 12% in 2025 compared to 2024, and the share of oil and gas revenues in the federal budget will increase to 73%.
Bloomberg reported that it had read the draft three-year budget, which showed that the Russian government plans to spend 13.2 trillion rubles (about $140 billion) for defense in 2025 is more than the 10.4 trillion rubles (about $110 billion) planned for 2024.
Bloomberg said that Russia’s spending on national defense and internal security in 2025 is greater than spending on education, health care, social policy and the federal economy combined.
The Kremlin will reportedly increase spending on classified items from 11.1 trillion rubles (about $117 billion) in 2024 to 12.9 trillion rubles (about $136 billion) in 2025.
Russian Prime Minister Mykhailo Mishustin said on September 24 that the government plans to fulfill “all social obligations to citizens” and emphasized the planned financing of medicine, pensions and national projects.
Russian Finance Minister Anton Siluanov acknowledged that “significant resources” were being directed to Russia’s “special military operation” but stressed that 40 trillion rubles (about $424 billion) would go to 19 national projects over six years – double the funding allocated for the period from 2019 to 2024. Siluanov also emphasized that Russia plans to spend 180 billion rubles (about 1.9 billion dollars) on the modernization of communal infrastructure and preferential mortgage programs.
ISW points out that Kremlin officials likely fear war fatigue among the Russian population and try to maintain public support for the war by emphasizing the Kremlin’s focus on social projects.
ISW Key Findings for September 29:
- Western countries continue to invest in the development of the defense-industrial base (DPB) of Ukraine.
- On September 29, Ukrainian troops reportedly struck a Russian ammunition depot and missile base near Kotluban, Volgograd Region.
- The Russian government is reportedly planning a further increase in defense spending in 2025, although Kremlin officials appear to emphasize planned social spending while avoiding discussion of increased defense spending.
- Ukrainian troops have recently advanced in the Glushkovsky district, west of the Ukrainian salient in the Kursk region.
- Russian troops have recently advanced in the Toretsk and Pokrovsky directions.