The Russian administration unveils its 2025 financial plan, withholding any specifics regarding military expenditures.
The Russian administration unveiled its proposed budget for 2025 to the Russian legislature on Monday. According to this, federal spending is projected to swell to 41.5 trillion rubles (roughly 400 billion euros) next year, a surge of nearly 12% compared to 2024. There was no disclosure about the planned investments in the military sector.
The Finance Ministry merely mentioned that "substantial funds" would be allocated for "arming the military with essential weapons and equipment, payment of compensations, and bolstering firms in the defense industry."
Since 2022, the Kremlin has been exerting considerable influence on the Russian economy, shifting its focus towards war preparations. This has resulted in a rapid expansion of its military-industrial complex, including the hiring of hundreds of thousands of new employees. In 2024, the military budget skyrocketed by nearly 70% compared to 2023, and along with security investments, represented 8.7% of the country's GDP, as per President Vladimir Putin - a record in contemporary Russian history.
The budget's "key objectives" are "meeting all social obligations towards citizens, ensuring the nation's defense and security, and preserving technological independence," clarified the Russian Finance Ministry. Upon request, Russian government representative Dmitry Peskov informed the news agency AFP that "all orders of the Russian president" are encompassed in the draft legislation. He declined to disclose further details.
Russian President Vladimir Putin stressed in mid-September that "enhancing the nation's defense capacity" and "integration" of the occupied Ukrainian regions "should be priorities" in the budget. To balance its budget, the Russian government has planned a tax hike for high incomes and corporations from January 2025, a move to sustain the offensive in Ukraine and related expenses.
The budget allocated "substantial funds" for "arming the military with essential weapons and equipment," indicating a significant focus on military expenditures. Despite not disclosing specific investment details, the military sector's growth is evident, as evidenced by the 70% increase in the military budget in 2024.
