For the first time since Russia’s full-scale invasion of Ukraine, funding for the Russian military and weapons procurement has “consumed” every second rouble collected from taxpayers for the federal budget.

For the first time since Russia’s full-scale invasion of Ukraine, funding for the Russian military and weapons procurement has “consumed” every second rouble collected from taxpayers for the federal budget.

Source: independent Amsterdam-based news outlet The Moscow Times, citing calculations by Janis Kluge, Deputy Head of the Research Division at the German Institute for International and Security Affairs, based on data from the Electronic Budget system

Details: The share of war-related expenditure in treasury revenues reached 50.1% in the first quarter of 2025 and 48.2% by the end of the second quarter.

The burden of war on the budget is increasing: in 2022, the military machine “burned” 24.4% of tax revenues, rising to 32.05% in 2023 and 39.05% in 2024. The previous record was set in the first quarter of 2023 at 45.4%.

The share of military items in total expenditure is lower because overall spending exceeds revenues, leaving the budget in deficit.

For example, in January–June, the Russian Ministry of Finance collected 17.584 trillion roubles (about US$219 billion) but spent 21.278 trillion (US$266 billion). Of the total spending, 39.9% went to the war over the half-year, and 41.2% in the first quarter.

The Moscow Times noted that these figures were absolute records in modern Russian history.

Background: The Russian authorities plan to sharply increase the tax burden on small- and medium-sized businesses to cover deficits in the Social Fund (formerly the Pension Fund) and the Compulsory Health Insurance Fund.

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