The source said the spending will include repairs of paving slabs on Red Square and in the surrounding area, and preparation of roads for the arrival of military vehicles.
This year the Victory Day parade is set to involve 8,729 service personnel, 112 military vehicles and 70 aircraft. The parade will be accompanied by a military orchestra of 1,100 musicians, and comprise three sections - a march pass, involving military personnel followed by sophisticated hardware and a fly over by combat aircraft.
Victory Day marks the final surrender by Nazi Germany to the Soviet Union in the Eastern Front of WWII, referred to as the Great Patriotic War in Russia and other former Soviet states.
Last year, the parade involved almost 8,000 personnel, 111 tracked and wheeled military vehicles, as well as 33 aircraft and helicopters.
The first Victory Parade was held on Red Square on June 24, 1945 on the order of the then-supreme commander-in-chief, Joseph Stalin.