Russian Officials Warn Putin Defense Spending Risks Widening Budget Deficit

Senior government officials have warned Russian President Vladimir Putin that spending on the war in Ukraine is on an unaffordable path. Officials in Russia’s Finance Ministry and central bank have advised the Kremlin that the current level of projected defense expenditure risks the government’s budget deficit widening dangerously, according to people familiar with the matter and documents reviewed by Bloomberg News.

The officials, who have grown increasingly concerned about the state of Russia’s economy and state budget in recent months, have proposed new cuts to defense spending.

It will be difficult to mend the country’s stretched public finances without finding further efficiencies, they have advised.