Russia is putting even more money into its military next year, with lawmakers approving a nearly 30 percent increase in defense spending on Wednesday.
That means a record 13.5 trillion rubles ($125 billion) will go toward “national defense,” surpassing what the country plans to spend on welfare and education combined.
And that’s not even counting classified or “domestic security” expenses tied to the war in Ukraine.
President Vladimir Putin, who’s expected to sign off on the budget soon, has already said that Russia is spending close to 9 percent of its entire economy on defense—levels not seen since the Cold War.
The focus is on pumping out weapons and keeping frontline soldiers well-paid, even as ordinary Russians feel the pinch from rising inflation and a ruble that’s losing value fast.
The ruble, which used to hover around 75-80 per dollar before the Ukraine invasion, has now dropped to over 105, sparking concerns about the country’s economic health.
While the government is doubling down on military spending, businesses and households are left grappling with the financial strain.