Record defence spending, pension cuts: Russia approves budget for 2025–2027
www.pravda.com.ua
Thu, 21 Nov 2024 20:32:39 +0200
The State Duma of Russia has approved the federal budget for 20252027 during a plenary session on 21 November in its third and final reading.
Source The Moscow Times Details The document revealed that the Russian government plans to further increase military funding next year while, for the first time in years, nominal spending on social support for citizens will be reduced.
The social policy category, which includes pensions and welfare payments, will decrease from RUB 7.73 trillion US76.3 billion this year to RUB 6.49 trillion US64 billion in 2025.
In 2026, social spending will increase to RUB 7.19 trillion US70.9 billion and then to 7.2 trillion US71 billion in 2027.
The funds saved will be redirected to the military budget, which will account for 32.5 of federal spending a record share since Soviet times.
For comparison, defence spending was 17 of the budget in the first year of the war against Ukraine, 19 in 2023, and 29.5 this year. In 2025, Russia plans to allocate a record RUB 13.5 trillion US133.2 billion to defence, followed by 12.8 trillion US126.3 billion in 2026 and 13.1 trillion US129.3 billion in 2027.
Compared to the current year, spending in 2025 will increase by 25, double that of 2023, and nearly quadruple the spending of the prewar year 2021.
The military budget will amount to 6.2 of the national GDP, with nearly onethird of the funds allocated under classified articles.
An additional RUB 3.46 trillion US34.1 billion will be spent on national security, which includes budgets for police, the National Guard, the Investigative Committee, intelligence agencies and other security structures.
Together, the military and security agencies will consume 40 of the federal budget RUB 16.9 trillion US166.8 billion.
Education spending will see little change, at RUB 1.57 trillion US15.4 billion next year compared to 1.54 trillion US15.2 billion this year.
Funding for state propaganda media, however, will rise to a record RUB 137.2 billion US1.3 trillion a 13 increase from 2024.
Background The Central Bank of Russia recently raised the key interest rate by 2 percentage points, reaching a record 21 annually.
Food prices in Russia are expected to increase by another 820 next year due to overall inflation, rising transportation costs and the Central Banks high key interest rate.
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