Kremlin increases defense spending, but tries to hide it from population - ISW
Photo: Russians intend to significantly increase defense spending (t.me/suspilnechernihiv)
The Russian government plans to increase defense spending in 2025. At the same time, the Kremlin emphasizes planned expenditures for the social sector and avoids discussing the increase in defense costs, according to the Institute for the Study of War (ISW).
On Sunday, September 29, the Russian Cabinet approved a draft federal budget for 2025-2027 and will submit it to the State Duma of Russia by October 1. According to the draft, Russia's federal revenues in 2025 will rise by nearly 12% compared to 2024, while the share of non-oil and gas revenues in the federal budget will increase to 73%.
On September 23, Bloomberg reported that it had reviewed the draft three-year budget of Russia. The document showed that the Russian government plans to spend 13.2 trillion rubles (approximately $140 billion) on defense in 2025 — more than the 10.4 trillion rubles (about $110 billion) allocated for 2024.
The agency stated that in 2025, Russia plans to allocate approximately 40% of its budget to national defense and internal security — this share exceeds the combined spending on education, healthcare, social policy, and the federal economy. The Kremlin will increase spending on classified items from 11.1 trillion rubles (about $117 billion) in 2024 to 12.9 trillion rubles (approximately $136 billion) in 2025.
Social cover
At the same time, Russian Prime Minister Mikhail Mishustin stated on September 24 that the government plans to fulfill all social obligations to citizens and emphasized the planned funding for healthcare, pensions, and national projects.
Russian Finance Minister Anton Siluanov acknowledged that significant resources are being directed toward the "special military operation", but stressed that 40 trillion rubles (approximately $424 billion) will be allocated to 19 national projects over six years — twice the funding allocated for the period from 2019 to 2024.
Siluanov also emphasized that Russia plans to spend 180 billion rubles (around $1.9 billion) on modernizing communal infrastructure and subsidized mortgage programs.
"Kremlin officials are likely wary of war fatigue among the Russian population and are attempting to maintain public support for the war by highlighting the Kremlin's attention to social projects," ISW stated.
It is worth noting that the British publication The Economist reported that Russia may adopt a defensive stance due to significant losses of armored vehicles on the frontlines next year.
Russia has suffered enormous losses in missiles and shells due to recent large-scale attacks on ammunition depots by Ukraine.
