Putin signs Russia's largest national budget ever, with increased military spending

(Patria) - Russian President Vladimir Putin signed the state budget for the next three years on Monday, which increases spending by about 25 percent and reportedly allocates a record amount to defense as the country's military operation in Ukraine drags on, AP reported.

The budget projects spending in 2024 of $415 billion with an expected deficit of $9.5 billion.

After the budget was approved by the lower house of parliament, Chairman Vyacheslav Volodin said it was developed specifically to finance the military and mitigate the impact of international sanctions imposed after Russia sent troops into Ukraine in February 2022.

Record low unemployment, higher wages, and targeted social spending are expected to help the Kremlin overcome the domestic impact of turning the economy towards the military, but could pose a problem in the long run, analysts say.

Part of Russia's budget is classified as secret as the Kremlin tries to conceal its military plans and bypass control over its operation in Ukraine. However, independent business journalists Farida Rustamova and Maxim Tovkaylo said this month that about 39 percent of all federal spending will go to defense and law enforcement in 2024.