The Russian Military’s budget is set to be much larger than previous ones, Reuters reports.
By the middle of 2023, Russia had already reached its target military budget for the year. The military is now taking more than a third of public funds, showing just how impactful the war is on the domestic front.
The Russian economy had originally been in a spiral following the sanctions levied against it in 2022. By now however, military production has been a key factor in the modest economic growth seen in Russia.
Russia has traditionally had a budget surplus, thanks to its oil. This year, however, it will have to go into debt to pay for all its governmental expenses. The Russian civilian sector and public services are facing austerity in turn, due t the war in Ukraine taking precedence.
Financing the war in Ukraine could be the greatest threat Russia actually faces. Cut off from international credit markets, Russia has already resorted to have cities, regions, and private companies sponsor certain regiments so it could afford its invasion of Ukraine. Coupled with the unpredictability of private mercenary groups, threats to Russian security look more and more internal.
