According to a report by the Moscow newspaper Kommersant, commissioned research indicates that the overall budget deficit in Russian regions has escalated to exceed €16 billion by the end of 2025, the highest recorded since such data has been monitored. This alarming trend shows a substantial increase from the previous year, where only 50 regions reported a deficit; this year, the number has risen to 74. The most significant deficits were observed in Moscow, the Yamalo-Nenets Autonomous Okrug, and the Khanty-Mansi Autonomous Okrug, revealing significant strains on regional finances.

The ongoing financial troubles are compounded by the national budget situation, which has been adversely affected by the war in Ukraine that started four years ago. The devastating costs associated with military expenditures, arms procurement, national security, and policing have surged to approximately €180 billion, representing nearly 40% of overall government spending. Such priority in funding military operations highlights the strategic choices of the Kremlin amidst growing economic stresses in other sectors.

While the arms industry has seen rapid growth due to state subsidies and large contracts in recent years, other sectors have been showing signs of crisis for some time. This disparity raises concerns about the sustainability of Russia's broader economy and the potential ramifications for social stability as regional deficits deepen and funding for essential services may be compromised in the coming years.