This work reveals the economic essence of military security, examines current problems of economic justification and effective allocation of budgetary funds directed towards the maintenance and reform of Russia's military organization. A methodology and economic-mathematical tools are proposed for solving the problem of reforming the Russian military organization. An analysis of organizational changes in the processes of modern military development is provided, and economic and legal mechanisms are developed to improve the social status of military personnel. Options for the transition of the state's military organization to a contract-based personnel recruitment system are analyzed separately.