Russia expands military budget and manpower

In late July 2026, President Vladimir Putin directed a substantial increase in Russia’s defence budget for the 2027‑2029 period. The draft budget would raise defence spending by 4–5 trillion roubles above the planned 12.9 trillion, reflecting war costs that analysts estimate have already reached roughly $746 billion. To finance the shortfall, the Ministry of Finance is weighing the seizure of civilian assets and additional borrowing, as the fiscal deficit swelled to about 6 trillion roubles in the first half of the year.

On the same day, Putin signed a decree enlarging the Russian Armed Forces to 2,426,130 personnel – an increase of 27,000, including 1.535 million active‑duty troops. The expansion, set to take effect on 1 August, follows a June‑2026 decision that had already raised force size to 2.399 million. The personnel boost comes amid the ongoing Russia‑Ukraine war, where more than 700,000 Russian troops are deployed, and defence spending now exceeds 6 % of GDP.

Together, the budget surge and manpower increase signal a concerted effort to sustain and intensify Russia’s war footing despite growing economic pressures.