Austerity measures for social welfare

Moscow’s military spending even higher than expected

The Kremlin needs more and more men for its bloody war of aggression.

(Bild: The Associated Press)

According to a draft law, Moscow intends to spend 13.5 trillion roubles (around 135 billion euros) from the state budget on its military next year - a quarter more than previously.

In total, a third of the budget will go to the armaments and defense sector due to the Russian war of aggression against Ukraine. The money will be used to procure new weapons and equipment, but also to recruit and pay soldiers. Together with the equally high expenditure on national security, this amounts to more than 40 percent. In public, Prime Minister Mikhail Mishustin and other cabinet members have avoided providing information on the increase in the defense budget.

At 10.4 trillion roubles (around 104 billion euros), 2024 will be an absolute record year for the defense sector, reported the independent business portal "The Bell". Military spending was actually supposed to fall significantly to 85 billion euros from next year.

Where the priorities lie
Last week, the financial service Bloomberg had already reported on rising military spending in Moscow. However, its estimate of the equivalent of 132 billion euros was slightly lower than the actual figure now estimated, reports "The Bell", citing an explanatory annex to the budget bill introduced to parliament.

In 2026 and 2027, spending on the military is also set to fall only slightly - to 128 and 131 billion euros respectively. Against the backdrop of record spending on the war, Russia is reducing its social spending by around nine percent to 100 billion euros in 2025.