Russia Looks to Delay Defense Ministry Pay Amid Budget Gap

The Ministry of Defense building in Moscow.

Source: Bloomberg

November 02, 2026 at 09:28 AM GMT+8

Russia’s Defense Ministry plans to shift December salary payments into January for the first time, while the government braces for a sharp widening of the budget deficit toward year-end.

Under a draft Defense Ministry order, pay for each December starting in 2026 would be made the following January. Previous regulations required December payments to be completed before the end of the year. A similar practice was in place in the Soviet Union.

Monthly pay for December would be transferred between Jan. 11 and Jan. 21. The order would not apply to troops fighting in Ukraine, who would continue to receive December payments by Dec. 25.

The change could help the government manage cash flows by shifting a large block of spending into the following fiscal period. December typically accounts for an outsized share of annual government expenditure, which has surged during the war.

In the fifth year of Russia’s war against Ukraine, Moscow’s plans to rein in the budget deficit have been undermined by another escalation in the conflict, after the failure of earlier US-backed efforts to reach a negotiated settlement.

Government spending this year is now expected to exceed the original plan by about 10%, reaching 48.5 trillion rubles ($602 billion). The full-year deficit is projected to widen to 7.3 trillion rubles, or 3.2% of gross domestic product, from about 2.2% in September.

The overshoot reflects heavier war-related spending. Russia’s latest budget plans also point to elevated military outlays for years ahead, suggesting President Vladimir Putin is preparing for a drawn-out confrontation.

Read more: Russia’s Spending Plans Show Putin Preparing for Years of War

Officials expect military expenditures to ease only slightly, to 16.6 trillion rubles in 2028 and 16.3 trillion rubles in 2029, after an anticipated record of 17.1 trillion rubles next year.

Payments to personnel will account for between 9% and 10.4% of total national defense expenditure over the next three years, according to an explanatory note accompanying the draft budget.

In September, Putin increased the authorized strength of Russia’s armed forces to 2,441,630, including 1,550,500 military personnel. The authorized number of service members has risen by more than half a million since 2022.