Sports Minister Vitaly Mutko said the sum paid to the Russian organising committee will cover all operational costs of staging the tournament, such as travel expenses, media facilities, stewarding and decorating the stadiums.
It does not include construction or infrastructure expenditure.
The budget covers expenses from this year until the end of the tournament year, Mutko said.
"FIFA has provided $699 million, that's including the year 2018. For the 2010 World Cup approximately the same amount was granted," he said.
The World Cup is expected to boost Russia's GDP by 527 billion rubles (around $18 billion) and create a million jobs, Russian business daily Vedomosti reported citing statistics from the organising committee.
Russia was awarded the World Cup in December 2010, beating a solo bid from England and joint efforts from Spain and Portugal and the Netherlands and Belgium.
Russia will name 11 host cities in September after a tour by a FIFA delegation of 13 candidate cities.