Russian President Vladimir Putin signed a decree on 1 December approving the 2025 federal budget and draft budgets for 2026-2027, with a striking emphasis on national security expenditures that could have significant geopolitical implications.
In 2024, Russia significantly increase spending of its budget for defense, approximately 28.3% of the budget. The defense budget for 2024 represents a notable increase from earlier years, indicating a shift in government priorities towards military capabilities and readiness
According to the Institute for the Study of War (ISW), the budget for 2025 allocates approximately 41 percent of Russia’s annual expenditures to national defense and security sectors.
However, the ISW reported that increased defense spending does not directly translate to proportional military capability enhancements.
“The increased Russian defense spending, while dangerous, does not necessarily equate to a one-to-one increase in Russian military capabilities,” the ISW assessment notes.
A substantial portion of the funding is reportedly earmarked for soldier and veteran benefits, potentially indicating underlying personnel support challenges, according to the report.
ISW said that the continued defense spending focus might be impacting the sustainability of social programs, potentially straining the Russian economy and Putin’s political stability.
Ukraine’s parliament adopted on 19 November the draft “On the State Budget of Ukraine” for 2025. The main priority for Ukraine’s budget for 2025 remains the security and defense of the state, says Ukrainian Defense Minister Rustem Umerov.
In particular, in 2025, Ukraine will allocate $53.52 billion to defense, which is $1.14 billion more than in 2024, according to Umerov.
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