Russia is preparing to increase defense spending to a record level by 25 percent. According to draft budget documents published on the parliament’s website on Monday, the planned increase will raise Russia’s defense budget to a record 13.5 trillion rubles (109 billion pounds) by 2025. This new amount is approximately 3 trillion rubles more than the amount allocated for defense this year.

40% OF TOTAL EXPENDITURES With this increase, defense and security expenditures will account for approximately 40% of Russia’s total government expenditures. This amounts to 41.5 trillion rubles by 2025. Leading Russian media outlets specializing in the economy, such as Bell, stated in their bulletin that “This increase confirms that the economy is transitioning to a war mode, and even if the war in Ukraine ends soon, channeling money to the military and the bloated defense sector will continue to be the top priority.”

DECREASE IN SOCIAL EXPENDITURES According to the draft budget, social expenditures, which were 7.7 trillion rubles this year, are expected to decrease by 16% to 6.5 trillion rubles next year. Russia’s significant investment in the military has raised concerns among European experts who believe that NATO underestimates Russia’s ability to sustain a long-term war.