December 1, Moscow (IANS) – Russian President Vladimir Putin has approved the federal budget for 2025, emphasizing a 25% increase in military spending and the development of critical infrastructure, including transport corridors such as the International North-South Transport Corridor (INSTC), which links Russia to India through ports like Chabahar in Iran.
Key Highlights of the 2025-2027 Budget:
Increased Military Spending
Defence allocation: 14 trillion rubles ($131.5 billion) over the next three years.
The increase reflects Russia's focus on national security amidst global tensions.
Investment in Social Welfare and Law Enforcement
Budget allocation: 21 trillion rubles ($197.3 billion).
Prioritizes social obligations, law enforcement, and national economic development.
Development of Transport Corridors
Special emphasis on the International North-South Transport Corridor (INSTC), a 7, 200 km-long trade route linking Russia with India.
Development of corridors in the Sea of Azov-Black Sea and eastern directions to enhance foreign trade amid sanctions.
Economic Outlook
Projected revenues (2025): 40.3 trillion rubles ($378.5 billion).
Expenditures (2025): 41 trillion rubles ($390 billion), resulting in a 0.5% GDP deficit.
GDP Growth Forecast:
2025: 214.5 trillion rubles ($2.02 trillion).
2026: 230.5 trillion rubles ($2.17 trillion).
2027: 248.3 trillion rubles ($2.33 trillion).
Inflation: Expected to remain under 4.5% in 2025, decreasing to 4% in subsequent years.
Focus on National Development Goals
Russian Prime Minister Mikhail Mishustin highlighted the budget’s alignment with President Putin's national development goals, particularly in response to Western sanctions.
"This is an ambitious goal set by the President. It is crucial for expanding foreign trade in view of the sanctions restrictions, " Mishustin stated, underscoring the importance of transport corridors for Russia’s economic strategy.
The budget’s secrecy, with one-third of expenditures hidden from public scrutiny, reflects the government’s focus on maintaining internal stability while navigating external pressures.