Russia's Military Spending Hits Record, While Regions Report Widespread Budget Deficits
Russia's military spending in the first quarter of 2026 reached nearly 6 trillion rubles (€71.1 billion), accounting for two-thirds of budget revenue. Meanwhile, 56 out of 83 regions have reported budget deficits, with many complaining about funding shortages.
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Despite earlier predictions of a reduction in 2026, Russia's military expenditure has continued to surge. In the first quarter of this year, almost 6 trillion rubles (€71.1 billion) were allocated to military needs, primarily the war in Ukraine. This means that two out of every three rubles entering the budget are now spent on the military.
The relentless increase in defense spending has alarmed financial officials, who have warned President Vladimir Putin that projected military outlays could lead to a dangerous rise in the budget deficit. The deficit has already been recorded in 56 federal subjects—two-thirds of all Russian regions.
As military spending consumes a growing share of resources, other areas face cuts. Regions are increasingly complaining about financial strain, with budget holes widening. Although the 2026 budget initially planned to reduce military funding, actual spending suggests the opposite trend.
