Russia goes full wartime: Putin signs 2026 budget with record military funding
Russian President Vladimir Putin (photo: Getty Images)
Russian President Vladimir Putin has signed the 2026 budget, which allocates record spending to the war while sharply reducing social programs and citizens' welfare, the Center for Countering Disinformation reports.
"The fact that nearly 40% of all expenditures in the 2026 federal budget are directed to the army and the security sector is a record figure since the Soviet era.
In addition, Putin's shift of Russia onto "wartime rails" clearly indicates that peace is not part of the Kremlin's plans for the coming year.
Due to the collapse in oil and gas export revenues caused by sanctions, the budget includes a large deficit of 1.6% of GDP.
To cover the deficit, the Russian authorities decided to reduce social programs — their share of expenditures has fallen to 25%, the lowest level in the past 20 years. This indicates a significant reduction in social guarantees for the population.
In addition, the budget provides for new taxes and fees. In particular, VAT is being raised to 22%, and various fees for businesses and citizens are being introduced, making it more difficult for small businesses to operate. In effect, the Russian population will be forced to pay for the war through higher taxes and reduced social services.
Analysts note that this budget clearly demonstrates that a protracted war remains the Kremlin's main priority, even at the cost of economic degradation and the impoverishment of its own population. Everything indicates that Putin's ambitions in the war against Ukraine outweigh internal stability and the welfare of Russians.
Ukraine's draft state budget for 2026 allocates 2.8 trillion hryvnias (around 70 billion USD) to the security and defense sector, and the main innovation is the creation of a 200-billion-hryvnia reserve fund (around 5 billion USD), which will allow additional defense needs to be quickly covered throughout the year.
At the same time, on the evening of December 2, talks are scheduled between US special envoy Steve Witkoff and Russian President Vladimir Putin regarding the possibility of ending the war in Ukraine.
The EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas, stated that next week could be decisive for Ukraine's long-term peace, given the series of upcoming negotiations.
