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Russia Plans 30% Defense Spending Hike in 2025

Alexander Nemenov / AFP

Russia's government plans to increase defense spending by about 30% next year as it diverts more resources to fund its war in Ukraine, according to Russia’s draft budget plans, which were published on Monday.

Moscow has already ramped up its military spending to levels not seen since the Soviet era, as it pumps out missiles and drones to fire at Ukraine and increases salaries in its effort to build up its forces. 

The latest planned increase in spending will take Russia's defense budget to 13.5 trillion rubles ($145 billion) in 2025, according to a document published on the parliament's website.

That figure does not include some other resources being directed to the military campaign, such as spending that Russia labels as "domestic security" and some outlays classified as top secret.

Combined spending on defense and security will account for around 40% of Russia's total government spending — or 41.5 trillion rubles ($440 billion) in 2025.

Before sending the draft budget to the lower-house State Duma, Moscow trumpeted an increase in investment and social welfare alongside higher military outlays.

The "top priority" of the budget is "social support for citizens," Finance Minister Anton Siluanov told a televised government meeting last Tuesday. 

"The second is the provision of expenditures on defense and security, providing the resources for the special military operation and support for families of those participating in the special military operation," he added, using Russia's official language for its war in Ukraine.

But the figures suggest that military expenditures have crowded out spending in other areas of the economy.

Planned spending on "national defense" is more than twice that allocated to social spending.

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