Putin Endorses Russian Federal Budget with Emphasis on Defense and Transport Corridors
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Moscow, Dec 1 (NationPress) Russian President Vladimir Putin has sanctioned the federal budget for 2025 and the upcoming period of 2026-2027, showcasing a remarkable 25% increase in military expenditures relative to the prior year, with a particular emphasis on the enhancement of transport corridors, including the International North-South Transport Corridor (INSTC) - a 7,200 km-long multimodal trade route that will connect Russia with India through ports such as Chabahar.
The budget is characterized by its secrecy, with one-third of its expenditures hidden from public view. The document, published on the legal-acts portal, prioritizes fulfilling social responsibilities, ensuring national security and defense, promoting technological independence, and upgrading infrastructure.
An allocation of 14 trillion rubles ($131.5 billion) has been designated for defense, alongside 21 trillion rubles ($197.3 billion) for social policies and law enforcement, and 14 trillion rubles ($131.5 billion) for national economic advancement over the next three years.
For 2025, it is anticipated that Russia's revenues will reach around 40.3 trillion rubles ($378.5 billion), while expenditures are forecasted to surpass 41 trillion rubles ($390 billion), leading to a deficit equivalent to 0.5% of the nation's GDP.
Russia's GDP is expected to grow steadily, hitting 214.5 trillion rubles ($2.02 trillion) in 2025, 230.5 trillion rubles ($2.17 trillion) in 2026, and 248.3 trillion rubles ($2.33 trillion) by 2027. Inflation is projected to stay below 4.5% in 2025 and decrease to 4% in subsequent years.
The ratified budget underscores a focus on military requirements, social welfare initiatives, technological progress, and infrastructure modernization. The rise in defense spending underscores Russia's determination to bolster its national security amid ongoing global tensions.
Previously, Russian Prime Minister Mikhail Mishustin indicated that the 2024 federal budget was executed with a surplus during the first nine months.
He noted that the three-year budget significantly emphasizes achieving national development objectives set by the Russian President and advancing transport corridors in the Sea of Azov-Black Sea and eastern regions, in addition to the International North-South Transport Corridor.
"This is an ambitious goal set by the President. It is vital for enhancing foreign trade considering the sanctions restrictions," Mishustin articulated during a governmental session to review the federal budget.
