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Russia Spends Record $125 Billion on Military in First Half of 2026, Nearly 44% of Federal Budget
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Russia allocated a record 44% of its federal budget to military needs during the first half of 2026.
According to calculations by Janis Kluge, a senior associate at the German Institute for International and Security Affairs based on Russian Ministry of Finance figures, direct defense spending reached 10.7 trillion rubles ($125 billion), as reported by Defence Blog.
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This marks a 30% surge compared to the same period in 2025. These expenditures accounted for 10.5% of Russia’s first-half GDP and equaled 57.3% of total federal government revenue, indicating that over half of every ruble collected in taxes went toward funding military operations.
The rise is primarily driven by classified budget items that Kremlin officials do not publicly detail. While Russia’s 2026 budget set a full-year limit of 11.6 trillion rubles ($135.5 billion) for classified spending, the government spent over 8.4 trillion rubles ($98 billion) in these categories in just six months. Historical budget data analyzed by Kluge suggests that approximately 85% of these hidden expenditures fund military requirements.
The proportion of federal resources consumed by the military has grown consistently since Russia’s full-scale invasion of Ukraine in February 2022. In the first half of 2018, defense spending made up 24.5% of the federal budget, dropping to around 20% in 2020 and 2021.
It rose sharply to 29.6% in the first half of 2023, reached 36.6% in 2024, and climbed to 39.3% in 2025 before hitting 43.8% in 2026. Publicly detailed defense line items remained stable between 11% and 15% annually, meaning virtually all financial growth occurred within secret budget classifications.
Since the start of Russia’s full-scale invasion of Ukraine, total direct military allocations from the federal budget reached 57.1 trillion rubles ($666 billion).
This figure excludes regional government spending, such as enlistment bonuses and family compensation payments. In the first quarter of 2026 alone, military spending reached 5.9 trillion rubles ($69 billion), driven by a 43% increase in classified spending compared to the prior year.
Kluge noted that part of this spike might reflect delayed 2025 expenses rolled over into 2026 to artificially meet past deficit targets.
The funding expansion coincides with declining oil and gas revenues, which fell 45% year-over-year in the first quarter of 2026 due to Western sanctions and currency fluctuations. Non-energy revenues rose 7%, failing to cover the gap.
Consequently, military costs consumed nearly two-thirds of all federal revenue in the year's opening months. Reports indicate Russian financial officials privately warned Vladimir Putin that current defense spending trends are becoming unsustainable.
Spending intensity typically slows in the second and third quarters, which could lower the full-year military share relative to total economic output.
According to a recent analysis, Russia had directed nearly every second ruble from its federal budget toward military-related spending during the first quarter of 2026.
This record surge pushed defense expenditures to 5.9 trillion rubles ($75 billion)—consuming nearly two-thirds of all government revenue during those three months—and ultimately drove the country’s cumulative federal budget deficit to approximately 6 trillion rubles ($76.4 billion) by the end of May.
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