Moscow: Russian President Vladimir Putin has signed off on a record-breaking budget for 2025, dedicating unprecedented resources to military spending amid the ongoing conflict with Ukraine. The newly approved budget allocates approximately $126 billion (13.5 trillion rubles) to national defense, making up 32.5% of total government expenditures.

According to CNN, this marks a $28 billion (three trillion rubles) increase over the previous record set in 2024, amounting to over 6% of Russia’s gross domestic product (GDP). Comparatively, last year’s defense spending accounted for 28.3% of total government expenditures. A report from The Kyiv Independent highlights that Russia’s planned expenditures on its military and law enforcement agencies for 2025 surpass combined allocations for education, healthcare, social policy, and the national economy.

Looking ahead, Russia’s three-year budget projects slight reductions in military spending for 2026 and 2027, with $114.9 billion earmarked for 2026 and $122.4 billion for 2027. The budget received approval from the State Duma and Federation Council in late November.

The conflict between Russia and Ukraine, now Europe’s largest war since World War II, has drained both nations' resources. Despite its larger and better-equipped forces, Moscow’s military spending has strained its economy, with inflation running high and labor shortages affecting the market. In October, the Russian Central Bank raised interest rates to 21%, the highest in decades, in an effort to stabilize the economy.

Meanwhile, Ukraine, though outmatched in terms of manpower and resources, continues to rely heavily on Western aid. On Monday, Germany pledged over half a billion dollars in additional military equipment, set for delivery in December. However, questions loom about the future of U.S. support for Kyiv, as President-elect Donald Trump prepares to take office.