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Russia’s State Duma approves record defense budget in first reading
Russia’s State Duma approved the three-year federal budget bill in its first reading on Thursday, October 29, 2026, with 372 votes; 17.1 trillion rubles is planned for defense. Together with national security and law enforcement spending, these expenditures will account for 44 percent of total government spending.
The three-year federal budget bill was approved in its first vote in Russia’s State Duma on Thursday, October 29, 2026. The bill raises defense spending to a record level to cover the increasing costs of the war in Ukraine and also provides for new tax measures.
A total of 17.1 trillion rubles, approximately 202.6 billion dollars, is planned for national defense. This amount represents more than one-third of total spending in the federal budget.
Security spending will account for 44 percent of total expenditure
With a projected 7.6 percent increase in national security and law enforcement spending, total funding for security agencies will reach 21.3 trillion rubles, approximately 262.1 billion dollars. As a result, security spending will rise to 44 percent of total government expenditure.
State Duma Speaker Vyacheslav Volodin said during discussions on the bill that the necessary measures had been prepared for security, defense, participants in the special military operation and their families.
Cuts planned in civilian spending
To finance the increase in military spending, allocations for some civilian areas are expected to be reduced. A 3 percent decrease is planned for both economic support and health spending, while social support spending is set to fall by 6 percent and housing and public utilities spending by 8 percent.
Measures to increase tax revenues
The budget bill includes a 22 percent value-added tax on cross-border online retail and a low customs fee on small international parcels to increase revenues.
The bill also provides for a progressive tax of up to 22 percent on passive personal income, a 35 percent tax on dividends transferred to Type C accounts of non-residents, and a 30 percent tax on companies’ excess profits in the mining and metallurgy sectors.
Russian Finance Minister Anton Siluanov said the bill maintains the priorities of fulfilling social obligations to citizens, carrying out the tasks of the special military operation and achieving the national development goals set by the head of state.
Process after the vote
In the first-reading vote, 372 lawmakers voted in favor and 51 abstained; no votes were cast against the bill. After passing its second reading, the proposal is expected to be put to a vote in the Federation Council and then submitted for President Vladimir Putin’s signature.
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