Overview
- Putin signed the 2026–2028 budget law that directs 12.93 trillion rubles to the armed forces and weapons procurement.
- Total defense and security allocations rise to 16.84 trillion rubles, equaling 38% of federal spending and the highest share since the Soviet era.
- A separate 3.91 trillion rubles funds “national security” agencies, including the Interior Ministry, National Guard, security services and the penitentiary system.
- Social spending falls to 25% of the budget and economic-support programs to 10.9%, reaching multi‑year lows.
- Assessments by CMASF, CSR and the Academy of Sciences point to shrinking civilian output, with 16 of 24 activity types declining, 66% of firms reporting demand below normal and companies using 39% of pre‑interest‑and‑tax profits to service debt.