Russia is drastically increasing its military budget

Russia is drastically increasing its military budget

Russian MPs approved the draft law on the budget for 2025-2027 in the third and final reading. which foresees a 30 percent increase in military spending next year, amid the escalation of the conflict in Ukraine.

As of 2022, the Kremlin has largely reoriented its economy to the war effort, developing its military-industrial sector at a rapid pace, notably by hiring hundreds of thousands of new people, which, however, has raised inflation.

According to the text approved by deputies in the Duma, the lower house of parliament, defense spending will reach almost 13,500 billion rubles in 2025 (about 127 billion euros), or more than six percent of Russia’s Gross Domestic Product (GDP).

At least 40 percent of the federal budget for 2025 will be devoted to defense and national security.

For the first time since the collapse of the USSR

The national military budget has already grown in one year by almost 70 percent in 2024, and this year, including investments in security, amounted to 8.7 percent of GDP, according to President Vladimir Putin.

This is happening for the first time in Russia since the collapse of the USSR more than 30 years ago.

In recent weeks, the Russian authorities have done everything to minimize the increase in military spending, praising planned investments in the social sector and for “national projects” with relatively vague outlines.

The approved budget “guarantees all social obligations, solves development problems and responds to the challenges our country is facing”, said Duma President Vyacheslav Volodin today.

The text still has to be approved by the Federation Council (upper house) at the end of the month before its promulgation, i.e. Putin’s signature.

Source: Beta

Photo: kremlin.ru, BetaAP