Russia Burns 65 Billion Rubles Per Day on War: Budget Strains Under Pressure.

Budget Analysis of the Russian Federation for Q1 2024

According to Espreso.tv: A review of Russia's federal budget for the first quarter of 2024 reveals a sharp escalation in military spending, occurring alongside a rise in classified expenditures and an economic downturn. Over these three months, the Russian war machine consumed roughly 65 billion rubles daily. Military outlays jumped by 68.7% compared to Q1 2024 and surged 129% relative to the same period in 2023. Furthermore, these expenses were 4.6 times higher than those recorded in the first quarter of 2022.

Classified Spending and Tax Revenue

Classified expenditures, which are also climbing rapidly, rose by 43% year-on-year, reaching 4.9 trillion rubles, up from 3.4 trillion rubles a year earlier. Currently, 38.2% of all federal spending is classified, with roughly 85% of that amount linked to military needs. Military costs for Q1 accounted for 2.5% of the projected annual gross domestic product (GDP) and 12% of the quarterly GDP.

Tax revenues for the first quarter totaled 8.3 trillion rubles. However, despite this income, the budget deficit over the first four months of 2026 hit 5.9 trillion rubles, exceeding the annual target by 50%. The Russian economy is already in recession, signaling potential further challenges to the country's financial stability.

These figures highlight trends that could significantly impact Russia's economic outlook.

The rise in military spending amid a recession underscores a prioritization of defense needs over social and economic ones. With a widening budget deficit and a lack of stable economic growth, such expenditures may exacerbate the nation's fiscal troubles down the line.