Russia’s 2025-2027 Budget Prioritizes Military Spending and Secrecy

Russian President Vladimir Putin has approved the state budget for 2025-2027, emphasizing military spending. This budget is set to be one of the most secretive in Russia’s history since the Soviet Union collapsed.

Focus on Military Expenditure

• Increased Defense Spending: The budget for 2025 includes a 25% rise in military expenses, totaling a record 13.5 trillion rubles (over $145 billion).
• Key Priorities: The budget prioritizes the needs of the military for the "special military operation" in Ukraine, as well as support for armed forces.

The government has stated that military needs will remain a top priority alongside social needs and technological development.

Secrecy and Budget Details

About 32.5% of the budget will go to national defense, up from 28.3% in 2024. One-third of the funds will not be subject to public oversight, increasing the budget’s secrecy.

Fiscal Sustainability

Despite rising expenses, the Russian government claims the budget is "balanced." Key projections include:

• Deficit: Expected to decrease to 0.5% of GDP, down from 1.7% in 2024.
• National Debt: Anticipated to remain below 20% of GDP over the next three years.

War in Ukraine

The war that began in February 2022 has become the largest military conflict in Europe since World War II. Key points include:

• Ukraine relies on significant aid from Western allies but the Russian army remains larger and better equipped.
• In recent months, Russian forces have gained territorial success in Eastern Ukraine, pushing back Ukrainian troops.