The Russian Federal Budget 2025–2027

The Russian federal budget for 2025 and planning years 2026 and 2027 (Federal Budget 2025–2027) outlines the priorities of the Putin government for this year and the next two. These priorities include the ongoing war in Ukraine, investments in the defense-industrial base to reconstitute Russia’s military, and targeted social spending to improve Russia’s demographics. The federal budget serves as the means to achieve these goals, but achieving them will be challenged by factors internal and external to Russia, such as sustainable economic growth amid sanctions, a dwindling labor force, and inflation.

This analysis of the Federal Budget 2025–2027 is instructive for policymakers for two reasons: (1) It illustrates the government’s priorities through the allocation of resources, regardless of political rhetoric or stated intentions, and (2) it highlights the constraints on the allocation of those resources. Such an analysis can both help policymakers understand the near-term developments that could affect the realization of President Vladimir Putin’s goals and inform policy options for the United States and its allies.