Russia is set to increase its military spending by 30 percent by 2025, reflecting a significant shift towards a war economy. This move underscores the Kremlin's prioritization of the ongoing conflict in Ukraine over domestic social programs.
The planned defense budget will reach 13.5 trillion rubles, equating to over 32% of the state budget. This surge in military expenditure contrasts sharply with the Kremlin's statements about prioritizing social support, revealing a deeper focus on sustaining the war effort.
The funding for this increase is expected to come from higher taxes, further burdening the already strained Russian economy. Economists warn that this massive military budget, which could make up 40% of total state spending, is unsustainable and could lead to a recession.
With the economy heavily dependent on the war, the potential for economic downturn looms large. Former central banker Alexandra Prokopenko notes that in Russia, 'cannons become more important than butter,' highlighting the government's prioritization of military needs over civilian welfare.
As the war drags on, this economic strategy may force Russia into prolonged conflict, exacerbating long-term financial instability and leaving the most vulnerable segments of society to bear the brunt of economic hardship.
