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Russia plans to increase defense spending to 6.2% of GDP in 2025 - Bloomberg

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Next year, Moscow seeks to increase defense spending to 6.2% of the country's gross domestic product amid the war against Ukraine. This is reported by Bloomberg, which managed to familiarize itself with the draft budget of the Russian Federation for 2025, UNN reports.

Details

According to the document, the Russian government intends to increase defense spending to 13.2 trillion rubles ($142 billion) in 2025 from 10.4 trillion rubles planned for this year, which is 6.2% of gross domestic product.

It is also noted that military spending is planned to be reduced to 5.6% of GDP in 2026 and to 5.1% in 2027.

The publication indicates that spending on national defense and internal security will account for about 40% of Russia's total budgetary expenditures in 2025. As a result, the amount of funds allocated for defense is greater than the total allocations for education, healthcare, social policy and the national economy.

росія відчує фінансово-економічні збитки від війни влітку 2025 року - Буданов07.09.24, 17:40

Addendum

Also, according to the document, the Russian Federation envisages that spending on classified or unspecified items will increase to 12.9 trillion rubles in 2025 from the initially planned 11.1 trillion this year, remaining at about 30% of total budget expenditures.

Among other things, the Russian government forecasts a budget deficit for 2024 at 1.7% of GDP, which is 0.6 percentage points higher than estimated in June

Recall

The EU High Representative for Foreign Affairs and Security Policy, Josep Borrell, said that the Russian economy is suffering significantly from Western sanctions because of the war in Ukraine. 

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