Russia's Budget: A Shift Towards Military Expansion

The Russian government is planning to reallocate 7 trillion roubles in its budget draft. A significant portion will support military spending, reaching 13.5 trillion roubles by 2025, the highest since the Cold War. Amendments prioritize defense at the expense of social spending amid ongoing military actions in Ukraine.

In a move that underscores its military priorities, the Russian government is set to reallocate 7 trillion roubles (approximately $72 billion) in its forthcoming three-year budget plan. As unveiled by Finance Minister Anton Siluanov, a conspicuous portion of this reallocation focuses on bolstering military expenditure, which is slated to climb to 13.5 trillion roubles by 2025—marking the highest military spending since the Cold War era.

For the first time, defense spending is poised to outpace social spending, Siluanov revealed during a cabinet meeting. With some 900 amendments on the table, the adjustments heavily focus on national defense and security, a strategy tied closely to Russia's ongoing military operation in Ukraine. 'A significant part of the amendments aims to ensure the defense and security of the country,' Siluanov emphasized.

The budget draft grants the government the flexibility to reassign resources within its overall expenditure framework, totaling 41.5 trillion roubles, as it nears a second reading in parliament. The implications of these adjustments signal a strategic emphasis on military might over social welfare in Russia's fiscal policy.

(With inputs from agencies.)