40% of the Budget for War: Russians to Pay for Increased Defense Spending

The Russian government is managing to balance the budget while ensuring the stability of the financial system. This was stated by Russian President Vladimir Putin during a speech to the Cabinet of Ministers.

Putin noted that the current financial condition of the state allows for comprehensive funding of defense and security. “At the same time, we can set a higher dynamic in the main areas of development within the framework of new national projects. The launch of these projects has become one of the most significant events of this year in many respects,” the Russian President’s words are quoted by the "Vedomosti" publication.

He described achieving long-term national development goals as a common task, emphasizing the need to overcome demographic challenges, ensure stable growth in birth rates, qualitatively modernize the economy and technology, and strengthen the healthcare and education systems.

Prior to participating in a government meeting, the President spoke in the Federation Council. He indicated that both chambers of parliament are finishing the autumn session with good results. According to Putin, several important laws have been adopted that pertain to crucial sectors.

Referring to Putin's statements about the country's financial state, the BBC's Russian service notes that the economic growth of the country is slowing, while the budget deficit is increasing. The media reminds that in September, the Russian Finance Ministry announced an increase in VAT (value-added tax, which consumers pay on most goods) from 20% to 22%, directly linking it to the need to find funds for defense and security expenditures. In the budget for 2025, these expenditure categories account for up to 40% of Russia's budget.