Published by Global Banking and Finance Review
Posted on September 16, 2025
MOSCOW (Reuters) -Former Russian President Dmitry Medvedev called the draft 2026 budget, now in preparation, a "wartime" budget and said social spending including support for veterans of the conflict in Ukraine must not be sacrificed to balance the finances.
The government must submit the 2026 draft budget, as well as a revised deficit figure for this year, to parliament by October 1. It expects this year’s deficit to exceed the planned 1.7% of gross domestic product (GDP).
Medvedev, who is deputy chairman of Russia’s Security Council and known for provocative statements on social media, is also a leader of the United Russia party, which holds a parliamentary majority.
"The budget is never easy, and now, frankly, it is a wartime budget," Medvedev told United Russia’s parliamentary faction before debates on the draft. He dismissed the term "balanced budget" as a "euphemism".
"The country’s development must not be sacrificed for the sake of a so‑called balance," Medvedev added, noting multiple social spending programmes, which were part of his party's election promises.
Russia’s economic growth is set to slow to at least 1.2% in 2025, the fourth year of the war in Ukraine, from 4.3% in 2024. President Vladimir Putin expressed dissatisfaction with the slowdown on September 15.
Combined spending on defence and national security will reach 17 trillion roubles ($204 billion) in 2025, the highest since the Cold War, accounting for 41% of total expenditures and making the defence sector the primary driver of economic growth.
($1 = 83.1955 roubles)
(Reporting by Gleb Bryanski; Editing by Andrew Cawthorne)
Explore more articles in the Headlines category
