The British Ministry of Defense announced that Russia's draft budget for next year assumes that military spending will increase to 32 percent. This shows that she still puts them above all other needs.
The latest intelligence update from the British Ministry of Defense reported that on September 30, the Russian government sent the draft budget for 2025 to the State Duma. It predicts that spending will increase, without taking into account inflationby 5 percent – up to 41.5 trillion rubles, which is equivalent to $447 billion.
The update includes a chart showing the main items in the draft budget for 2025.
Russia puts financing the war ahead of all other domestic priorities
It was noted that the proposed budget envisages an approximately 25% increase in military spending in 2025 compared to 2024, and they will constitute 32%. all budget expenditures, while before the war, in the 2021 budget, this percentage was 14.5%.
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As assessed, the new budget shows that Russia continues to prioritize financing the war over all other national priorities, e.g. it is assumed that social spending will fall by 16 percent.
“Demand continues to outweigh supply in the Russian economy and the increased budget for 2025 will likely worsen this. This will almost certainly increase inflationary pressure, which remains a key issue as the inflation rate in August 2024 was around 9 percent.” – it was written.