Russia's 'Wartime' Budget Prioritizes Defense Over Social Spending

The draft 2026 budget for Russia, described as a 'wartime' budget by former President Dmitry Medvedev, prioritizes defense spending despite potential impacts on social initiatives. Medvedev insists that social spending, including veteran support, remain intact while navigating the financial constraints of the ongoing conflict in Ukraine.

As deputy chairman of Russia's Security Council, Medvedev, noted for his outspoken social media presence, emphasized the difficulties of the budget process in a recent address to the United Russia party. The 2026 budget draft is due to be submitted to parliament by October 1, alongside a revised deficit forecast for the current year, which surpasses the planned 1.7% of GDP.

In 2025, defense and national security spending will hit 17 trillion roubles, constituting 41% of total expenditures. This surge underscores defense as a crucial aspect of Russia's economic strategy amidst the conflict, despite an anticipated economic growth slowdown from 4.3% in 2024 to 1.2% in 2025.

(With inputs from agencies.)