Kremlin attempts to hide from public increase in war spending in 2025 - ISW

The Institute for the Study of War (ISW) reports.

Thus, according to the report, the draft federal budget of Russia for 2025-2027, approved by the government on September 29 and submitted to the State Duma, provides for a significant increase in defense spending.

The draft budget states that Russia's federal revenues will grow by almost 12% in 2025 compared to 2024, and the share of non-oil and gas revenues in the federal budget will increase to 73%.

Russia's military spending in 2025 will amount to 13.2 trillion rubles (about $140 billion), which is significantly higher than the 10.4 trillion rubles (about $110 billion) planned for 2024.

According to Bloomberg data cited by ISW analysts, about 40% of the 2025 federal budget will be spent on defense and homeland security - more than on education, healthcare, social policy, and the federal economy combined.

Spending on classified budget items will increase from 11.1 trillion rubles in 2024 to 12.9 trillion rubles in 2025.

Nevertheless, Prime Minister Mikhail Mishustin declared that all social obligations to citizens would be fulfilled, and Finance Minister Anton Siluanov emphasized the significant funding of 19 national projects (40 trillion rubles over six years).

Siluanov also mentioned the allocation of funds for the modernization of utility infrastructure and mortgage programs.

Analysts believe that the emphasis on social programs is intended to mitigate potential public discontent over the war in Ukraine.

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