Putin intends to nearly double defense spending – Bloomberg

Change of priorities in the budget speaks of an increase in the cost of the war in Ukraine

Putin intends to increase spending on the army and cut some other spending / screenshot
Putin intends to increase spending on the army and cut some other spending / screenshot

President Vladimir Putin intends to increase funding for the army, despite Western sanctions . In the next two years, much more will be spent from the state budget than originally planned.

It is reported by Bloomberg .

It is noted that defense spending will exceed the original budget planning for 2023 by more than 43%, while spending on homeland security and law enforcement will grow by more than 40%, according to the three-year financial plan.

Budget projections are changing because priorities have shifted in favor of the military. Spending on “national defense” is almost 5 trillion rubles or $84 billion, which is 3.3% of GDP.

According to the estimates of the Stockholm International Peace Research Institute, the “national defense” item in the Russian budget accounts for about 3/4 of total military spending, including operating expenses and the purchase of weapons.

At the same time, environmental protection spending will be reduced by about a quarter. At the same time, spending on education and culture has not actually changed. 

The setbacks in the war against Ukraine led Russian President Vladimir Putin to announce “partial mobilization” to recruit up to 300,000 reservists. At the same time, the budget plan provides for conscription costs of almost 16 billion rubles in 2023 and 16.5 billion rubles each in 2024 and 2025. 

According to forecasts, the budget deficit will increase in 2023 to 2% of GDP from 0.9% this year. The government will finance the deficit mainly through debt and reserves. The plan also calls for borrowing up to $1 billion a year in foreign currency.

In addition, annual gas exports are expected to decrease by almost 40% in 2023-2025, while crude oil exports will increase slightly.

Also, the budget will allocate more money for “patriotic education”, a program that includes historical exhibitions, and equipping schools with state symbols.

As UNIAN previously reported, Ukrainian President Volodymyr Zelensky said that Russia spends  tens of billions of dollars on lies and propaganda,  but did not take into account that the result is not guaranteed.

Later, Forbes reported that one day of war costs the Russian budget about $400 million a day. Thus, during the 200 days of the war, Moscow spent more than 80 billion dollars. 

On September 22, the head of the President’s Office, Andrei Yermak, calculated that mobilization would cost the Russian budget at least 1.3 trillion rubles annually.

(C)UNIAN 2022

5 comments

  1. So, this means that the crap hole will get crappier, due to lack of funds for infrastructure and even more money destined for the military will seep away into the crap hole’s many dark channels, never to be seen again.
    Good plan, Vlad. I like!

    Liked by 3 people

  2. So wait, does this mean that they will be spending on the ‘before’ amount on actual military spending and then taking the new part to replace their yachts and European summer homes (but in North Korea)?

    Liked by 1 person

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