The press secretary for the Russian president, Dmitry Peskov, stated that boosting defense spending in 2024 is absolutely necessary. He spoke during a briefing to journalists when asked about the sharp 68% rise in the defense portion of the national budget.
The official explained that the higher allocation is essential because the country faces a hybrid warfare environment and is conducting a special military operation, both demanding substantial costs.
The Ministry of Finance projects the total federal budget expenditures at 36.6 trillion rubles with revenues at 35 trillion rubles. Of the treasury, about 29.3 percent, roughly 6 percent of Russia’s GDP, or 10.7 trillion rubles, is planned for national defense.
“I have half a glass but I want a bucket”
Comprehensive defense and hybrid warfare expenditures in 2023 are expected to reach 6.4 trillion rubles. This figure reflects the allocation under the section focusing on security and strategic defense in the annual budget plan.
Social policy stands second in the current draft budget, with an allocation of 7.71 trillion rubles, which accounts for 21.1% of total expenditures. This is the lowest share since 2011. Historically, from 2015 to 2021, social policy consumed about 28% of the annual budget.
During a plenary session at the International Financial Forum, Finance Minister Anton Siluanov emphasized that the draft budget for the coming three years would be sufficient for its stated aims. He acknowledged the common saying that money is never enough but noted that there would be enough to cover planned spending. He also added a practical reminder: even with available funds, careful planning and prudent management matter greatly.
Siluanov also pointed out that while the amount of money matters, it is the application of resources that makes the difference. The core message was clear: responsible budgeting, paired with skilled oversight, can achieve the planned outcomes without unnecessary waste.
three year plan
On September 22, the Government of the Russian Federation approved the three-year draft federal budget. For 2024 the forecast shows revenues of 35 trillion rubles against expenditures of 36.6 trillion rubles. In 2025, projected revenues reach 33.5 trillion rubles with spending of 34.4 trillion rubles. For 2025 the authorities anticipate revenues of 34.1 trillion rubles and expenses of 35.6 trillion rubles. In this framework, the budget deficit is expected to stay within about 0.8 to 0.9 percent of GDP.
An explanatory note accompanying the draft budget notes that the deficit for the current year could be around 1.8 percent of GDP, equivalent to approximately 3.01 trillion rubles. The fiscal policy aims to adhere to defined fiscal rules that guide external stabilization and macroeconomic resilience in the face of shocks.
Deputy Finance Minister Alexey Sazanov indicated on September 25 that there would be no increase in basic taxes in 2024, 2025, or 2026 budget drafts. The focus, he explained, would be on revenue administration with the Federal Tax Service setting the revised plan for the next year at a figure of 14 percent plus the current year’s level. In 2024, funds from Russia’sNational Welfare Fund are set to be used to finance the federal budget deficit across the forecast horizon, with the fund replenished by additional oil and gas revenues from 2023–2025.
Overall, the three-year approach aims to balance defense needs, social commitments, and macroeconomic stability, keeping within the framework of fiscal rules and planned macro targets. The government highlights that resource allocations are driven by strategic priorities, and that prudent management remains essential to sustain growth and stability over the medium term. [Source: official budget notes, 2024–2026 projections].