Russia Boosts Defence Spending Amid Economic Shifts

Russia plans to increase its national defence spending by 25%, reaching 6.3% of GDP in 2025. This highlights the government's focus on military operations, despite projected budget deficits and declining oil and gas revenues. Defence spending will hit 13.5 trillion roubles as part of a broader strategic shift.

Russia is set to ramp up national defence spending by a quarter in 2025, reaching 6.3% of GDP, the highest since the Cold War, according to draft budget documents released Monday. This move signifies heightened military focus amid ongoing operations in Ukraine.

The draft budget submitted to the State Duma indicates defence spending will soar to 13.5 trillion roubles ($145 billion), a 25% increase from 2024. This contrasts with previous plans to cut defence spending, highlighting a shift in state priorities.

Despite the surge in defence expenditure, the Finance Ministry outlined an expected drop in spending to 12.8 trillion roubles in 2026. Alongside this, the share of GDP from oil and gas revenues is anticipated to decline as Russia aims to reduce its dependency on these industries.

(With inputs from agencies.)