Anna Hartz
Military spending continues to take priority, while the government faces a larger budget deficit and rising costs.
Russia’s war in Ukraine is putting growing pressure on the country’s finances. Officials now say some planned government spending will be moved to later periods as the Kremlin tries to keep its finances under control.
Defense is first priority
Finance Minister Anton Siluanov announced the changes at the Moscow Financial Forum on September 21. He said defense and front-line needs remained the government’s main priority, reports United24Media.
“The most important thing for us right now is defence tasks, the tasks of the front,” Siluanov said. He added that the government needed to adjust spending and find additional financial resources to deal with the budget situation.
Russia’s federal budget deficit reached 5.8 trillion rubles, or around $72.5 billion, between January and August. That equals 2.5 percent of the country’s gross domestic product. Siluanov said the deficit would probably grow further but remain below three percent of GDP.
The government plans to cover the shortfall through existing funds and additional borrowing. The original 2026 budget had set aside 12.9 trillion rubles for national defence.
However, the actual cost of the war is higher when other military-related categories are included. Research by Janis Kluge of the German Institute for International and Security Affairs found that spending connected to the invasion reached 10.687 trillion rubles during the first six months of the year.
Military spending increased fivefold
Military and arms production spending increased by 30 percent compared with the same period in 2025. It was also 65 percent higher than in the first half of 2024. Compared with 2021, before the full-scale invasion, military spending has increased more than fivefold.
Total military spending since the beginning of 2022 has passed 57 trillion rubles, according to the calculations.
The growing costs have raised concerns about how long Russia can maintain its current war effort. Labour shortages and pressure on public finances are limiting the government’s options.
Analysts have warned that the Kremlin may eventually face a choice between reducing its military goals in Ukraine and introducing unpopular measures to keep the war going.
For now, the government is delaying some spending while continuing to give priority to the front and defence needs.
