On Wednesday, November 1, 2023, lawmakers in Russia’s upper house of parliament approved a significant increase in defense spending for the year 2025. The budget allocates an almost 30 percent hike, committing a record 13.5 trillion rubles (approximately $125 billion) to “national defense.” This amount surpasses spending for welfare and education combined, highlighting the prioritization of military expenditures amid the ongoing military offensive against Ukraine.
Moscow’s military spending has reached levels not seen since the Soviet era, as the country continues to produce missiles and drones for use in its conflict with Ukraine. The funding also includes lucrative salaries for the hundreds of thousands of frontline soldiers engaged in this offensive. It’s important to note that the stated figure does not encompass additional resources directed toward the military campaign, such as expenditures classified as “domestic security” or other top-secret spending.
The budget is set to be presented to President Vladimir Putin for his approval and signature. Earlier this year, Putin mentioned that Moscow was investing close to nine percent of its economy into defense and security, marking the highest levels since the Cold War.
This surge in military spending comes amid economic challenges in Russia, with rising inflation and a depreciating ruble affecting both businesses and households. Recent weeks have seen a sharp decline in the value of the Russian currency, which many citizens see as an indicator of the country’s economic stability. The ruble, which traded at around 75-80 to the dollar before the start of the military offensive, has weakened significantly, reaching over 105 rubles against the US dollar.
