Russia to increase defense spending by 25% by 2025

Russia's defense spending will rise to 13.5 trillion rubles ($145 billion) by 2025, the fourth year of the special military operation in Ukraine, up 25 percent from 2024 spending, according to a document released on Monday.

Defense spending will account for 32 percent of total budget spending in 2025, estimated at 41.5 trillion rubles ($446 billion). The draft budget has been submitted to the State Duma, Russia's lower house of parliament, for consideration.

Last year, the Russian government planned to cut defense spending by 21% by 2025. However, the change shows that policymakers' focus on the military continues to grow.

In 2022, when the war in Ukraine began, Russia spent 5.5 trillion rubles ($59 billion) on defense.

“Resources will be allocated and have been allocated to equip the armed forces with the necessary weapons and military equipment, pay military personnel and support defense industry enterprises,” the Russian Finance Ministry said.

About 10% of total defense spending will go toward paying military personnel, with the minimum salary for the first year of frontline service reaching 3.25 million rubles ($34,945), the highest since the Soviet era.

State spending on national security, including funding for military and security agencies, will reach 3.5 trillion rubles ($38 billion) by 2025. Total spending on defense and security will reach 17 trillion rubles ($183 billion), or nearly 41 percent of total state spending, and 8 percent of the country's GDP.

That spending level is comparable to the late Soviet era, when the country fought in Afghanistan and maintained a large nuclear arsenal to confront Cold War rivals.

Defense spending will be twice as much as the amount spent on social needs, including pensions, social benefits and subsidies, estimated at 6.5 trillion rubles ($70 billion) by 2025. The government will allocate 1.58 trillion rubles ($17 billion) to education and 1.86 trillion rubles ($20 billion) to health, representing 0.7% and 0.87% of GDP, respectively.

The 2024 budget deficit forecast has increased to 1.7% of GDP, compared to the initial projection of 1.1%. The 2025 budget deficit is forecast at 0.5% of GDP.

Russia's oil and gas revenues are expected to decline in 2025-2027 due to falling commodity prices and tax changes. The share of oil and gas revenues in total budget revenues will be 27%, according to Finance Minister Anton Siluanov.

“This is lower than in previous years and is a good sign – we are reducing our dependence on oil and gas in budget revenues,” Minister Siluanov said on national television.

Cao Phong (according to Aljazeera)

Source: https://www.congluan.vn/nga-se-tang-25-chi-tieu-quoc-phong-vao-nam-2025-post314699.html