Russia's Defense Spending Surges Amid Budget Cuts to Technology Projects
Russia has significantly reduced funding for its domestic technology initiatives, reallocating resources to sustain military expenditures. According to the Center for Macroeconomic Analysis and Short-Term Forecasting, the 2025 budget for technological programs was cut by nearly 38%, with the space technology sector losing its entire budget. Despite these cuts, defense spending remains robust, with 13.5 trillion rubles allocated to military outlays. This shift has exacerbated structural imbalances in the civilian economy, as the military-industrial complex monopolizes domestic labor, affecting civilian manufacturing sectors.