Russia could spend more than R2tn ($66bn) on defence equipment by 2013.
The figure represents a 60% increase from R1.264tn ($41.7bn) defence spending in 2010, according to RIA Novosti.
An official from the Russian Center for Analysis of Strategies and Technologies (CAST) said that the government was likely to spend more on the navy, and the aviation and space industries.
The major portion of the budget will be spent on the construction of Yasen and Borei Class submarines, three new Talwar Class frigates, three improved Kilo Class submarines, Bulava ballistic missiles and other vessels for the Russian Black Sea Fleet.
The spending will also cover the construction of the first two Mistral Class amphibious assault ships under a Russian-French deal.
In addition, Russia has plans to spend R80bn ($2.6bn) on 60 Su-family fighter jets starting 2010 and around R25bn ($826mn) to procure 26 MiG-29K Fulcrum-D carrier-based fighter jets.