Russia to cut military spending for first time since war
Illustrative photo: Russia cuts war spending (Getty Images)
Russia’s national defense spending will drop by nearly 1 trillion rubles to 12.6 trillion rubles ($150.5 billion) in 2026, down from 13.5 trillion rubles in 2025, according to Reuters.
On Wednesday, September 24, the Russian government approved a new draft budget for 2026, which some Kremlin officials described as a “wartime budget.” Updated figures for 2025 were also released, showing expected economic growth of just 1%, down from 4.3% last year.
According to Russia’s Finance Ministry, national defense spending will fall to 12.6 trillion rubles ($150.5 billion) in 2026, compared to 13.5 trillion rubles in 2025 — the highest level in the post-Soviet period.
The 2025 budget deficit is projected at 2.6% of GDP, the largest since the start of Russia’s war against Ukraine and 53% higher than previously planned.
The finance ministry said the draft 2026 budget was "balanced and sustainable" while providing "financial support for the country's defence and security needs".
Russia's money for war
As reported earlier, the Finance Ministry has proposed raising the value-added tax (VAT) rate from 20% to 22% in 2026 to help fund military spending in the fourth year of the war. Last week, Vladimir Putin signaled readiness to increase certain taxes to cover the deficit.
In 2024, Russia’s war spending amounted to $149 billion.
Ukraine's wartime costs
According to the Stockholm International Peace Research Institute (SIPRI), Ukraine bears the world’s heaviest military burden, spending 34% of its GDP in 2024. The country used $65 billion of its own funds and received an additional $60 billion in foreign assistance.
