The war with Ukraine has absorbed half of the budget revenues of the Russian Federation: details of the report.

According to FREEДOM:

Russia's budget expenditures on the war with Ukraine

According to the data from the Center for Countering Disinformation (CCD) under the National Security and Defense Council, for the first time since the beginning of the war in Ukraine, half of the revenues of the Russian budget are going to finance the army. This information was made public on August 30, 2023.

“For the first time since the beginning of the invasion of Ukraine, every second ruble received in the federal budget of the Russian Federation has gone to finance the army and procure weapons. In the first quarter of 2025, the share of military expenditures in the budget revenues was 50.1%, in the second - 48.2%,” the CCD reports.

According to estimates, in the first half of the year, the Kremlin spent more than 8.4 trillion rubles (about 105 billion dollars) on the army, which is 31% more than last year and three times more than in 2022.

“At the same time, expenses significantly exceed revenues: in January-June, the budget collected 17.6 trillion rubles (≈ 220 billion dollars), while 21.3 trillion (≈ 226 billion dollars) was spent,” the CCD notes.

These expenditures lead to the depletion of the budget, an increase in the deficit, and a reduction in funding for social needs.

“The Kremlin has effectively placed the war above the economic stability and welfare of its own citizens,” emphasized the Center for Countering Disinformation.

The economic situation in Russia

Previously, military analyst and former SBU employee Ivan Stupak noted that the economic situation in Russia will be a key factor for stopping the war.

These data indicate serious problems in the Russian economy that are already reflecting on the social life of citizens. High military expenditures, which exceed budget revenues, raise questions about the long-term stability of the Russian economy. As experience shows, in times of economic difficulties, governments tend to change policies more often, so the further development of events may significantly affect the course of the conflict.