Business News

The Russian government is seeking to reallocate 7 trillion roubles ($72 billion) in its three-year budget draft, with a significant portion of the funds directed towards the military, Finance Minister Anton Siluanov said on Thursday. The draft allocates 13.5 trillion roubles to the military in 2025, accounting for a third of total expenditure or 6.3% of GDP - the highest level since the Cold War. New amendments suggest that this figure could be even higher. For the first time, the share of spending on defence will be double that of social spending. Siluanov told a cabinet meeting that the government has prepared about 900 amendments to the draft. "A significant part of the amendments is aimed at ensuring the defence and security of the country, including the conduct of the special military operation," Siluanov said during a cabinet meeting, referring to Russia's military action in Ukraine. The government has the authority to shift funds within the total expenditure of 41.5 trillion roubles between sectors in the budget draft as it approaches the second reading in the lower house of parliament. The draft has already passed its first reading.