Russia's New Budget Leans Heavily on Military Spending Amid Secrecy

Russia's state budget for next year includes a 25% increase in military spending and will be one of the most secretive in post-Soviet history. Almost one-third of all spending is closed to public scrutiny. Additionally, higher-than-expected corporate and personal taxes and utility tariffs will likely impact inflation.

Russia's upcoming state budget, featuring a 25% increase in military spending, will be the most secretive since the Soviet era. Nearly one-third of expenditures are hidden from public view, according to Reuters.

The government plans to allocate 41.5 trillion roubles ($443.14 billion) next year, with substantial revenue increases from corporate and personal income tax hikes. Only 28.4 trillion roubles are earmarked for specific items, leaving 85% of national defense spending classified.

Economist Evgeny Suvorov noted the ongoing 'militarisation of the economy,' while Alfa Bank’s Natalia Orlova warned that rising tariffs might exacerbate inflation. The central bank is currently assessing the budget's potential inflationary impact ahead of its next rate-setting meeting.