Russian President Vladimir Putin has approved the country's 2025 budget, allocating $126 billion (13.5 trillion rubles) to national defence, which accounts for 32.5% of the total government spending. This marks a significant increase from last year’s budget, highlighting the ongoing strain the war in Ukraine has placed on Russia’s finances.

The budget sets a new record, with military spending expected to account for over 6% of Russia's GDP. In contrast, expenditures on education, healthcare, and social policies have been significantly lower. Despite the massive budget allocation, the government anticipates slight reductions in military spending for 2026 and 2027.

The ongoing conflict has put pressure on Russia's economy, with high inflation, labor shortages, and soaring interest rates. As the war continues, Russia’s economic challenges persist, even as Ukraine receives significant military aid from Western allies.