Russia’s Ministry of Defense plans for the first time to postpone December salary payments until January, while the Russian government is preparing for a sharp increase in the budget deficit by the end of the year. Bloomberg reported this, UNN writes.
Details
According to a draft order by Russia’s Ministry of Defense, salaries for each December, starting in 2026, will be paid the following January. Previously, a provision stipulated that December payments had to be made by the end of the year. A similar practice existed in the Soviet Union.
Monthly salaries for December will be transferred between January 11 and 21. The order does not apply to service members taking part in the Russian Federation’s war in Ukraine, who will continue to receive their December payments by December 25, the publication writes.
"This change could help the government manage cash flows by shifting a significant portion of spending into the next financial period. December usually accounts for a disproportionately large share of annual government spending, which has risen sharply during the war," the publication notes.
In the fifth year of Russia’s war against Ukraine, Moscow’s plans to reduce the budget deficit, as noted, were undermined by another escalation of the conflict following the failure of earlier US-backed attempts to reach a peace settlement.
Russia’s government spending is expected to exceed the initial plan by approximately 10% this year, reaching 48.5 trillion rubles ($602 billion). The full-year deficit is projected to increase to 7.3 trillion rubles, or 3.2% of gross domestic product, from approximately 2.2% in September.
The overspending reflects an increase in war-related expenditures, the publication writes. Russia’s latest budget plans also point to increased military spending in the coming years, which "indicates that President Vladimir Putin is preparing for a prolonged confrontation," the publication states.
According to official forecasts, military spending will decline only slightly, to 16.6 trillion rubles in 2028 and 16.3 trillion rubles in 2029, after reaching an expected record level of 17.1 trillion rubles next year.
According to the explanatory note to the draft budget, payments to Russian service members will account for between 9% and 10.4% of total defense spending over the next three years.
In September, Putin increased the authorized strength of Russia’s armed forces to 2,441,630 personnel, including 1,550,500 service members. Since 2022, the authorized number of service members has increased by more than half a million people.