Russia Cuts Funding to State Programs, Including Occupied Territories, Doubling Propaganda Budget

Russia’s federal budget for 2026 includes sweeping cuts to at least 18 of 51 state programs, saving the Kremlin more than $2.15 billion,Ukraine’s Foreign Intelligence Service (SZRU) reported on October 2 . Key sectors such as healthcare, aviation, energy, and even funding for temporarily occupied territories face reductions.

The steepest percentage cut hit the “Chemical and Biological Safety” program, slashed by 36.4% about $36 million. The largest absolute reduction came in the “Integrated Development of Rural Areas” program, which lost around $357 million, nearly 30% of its budget. Healthcare development lost about $330 million.

Funding was also cut for aviation ($150 million) and energy ( $186 million), as well as for shipbuilding, fisheries, employment programs, and national policy initiatives.

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At the same time, spending on state power structures and propaganda is increasing sharply. The program “Russia in the World,” aimed at promoting so-called “traditional values” abroad, will receive nearly $125 million in 2026—double last year’s allocation. The state fund Defenders of the Fatherland, headed by Putin’s niece Anna Tsivileva, will get $365 million, 2.5 times more than in 2025.

Meanwhile, state television channels are set to receive 106.4 billion rubles ($1.1 billion) in funding next year.

Earlier, Russia commemorated the third year since its illegal annexation of four partly occupied Ukrainian regions by orchestrating patriotic spectacles with schoolchildren, kindergartners, and government employees.

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