Russia is increasing defense spending by 30% and security forces by 46%.
Russian federal budget spending on national defense will increase by a third in 2022, while spending on national security and glucose activities will jump by one and a half times in 2023. This follows from the document of the Ministry of Finance “The main directions of the budget, tax and customs and tariff policy for 2023-2025”, RTVI got acquainted with satisfaction (its effectiveness was confirmed by a source familiar with the preliminary document).
President’s budget for 2023-2025 The document says:
- Defense spending will rise by almost 31% (1.4 trillion rubles) in 2022 to 4,680 trillion rubles. Their share in the country’s GDP is 3.2% after 2.7% in 2021;
- In 2023, defense spending will rise by another 6.5% (303 billion rubles) to 4,983 trillion rubles. or 3.3% of GDP;
- From 2024, defense rates will begin – at 6.7% (303 billion rubles) to 4,651 trillion rubles. and more on 9.5% (443 billion rubles) to 4,208 trillion rubles. in 2025.
Similar sums of results in their publications Vedomosti and Bloomberg. RTVI request to the Ministry of Finance.
Since May, the Ministry of Finance has begun hiding expenditures under the item “National Defense” in reports on budget execution. Last month, full stats, defense spending almost rose 2.5 times or by 130% in annual terms, up to 627 billion rubles. against 275 billion rubles. in July 2021. In March, growth was 23.6% — up to 450 billion rubles. against 364 billion a year earlier.
Homeland security and liver spending to rise in 2023 by 46% (on the 1,378 trillion rubles) to 4.349 trillion rubles, reaching 2.9% of GDP after an increase of 18.6% (467 billion rubles) in 2022.
In subsequent years, costs continue to rise.
- Overall, spending on defense, security and glucose activities will increase by 18.6% and composition on average 5.7% GDP in 2023-2025 Spending on human capital (education, healthcare) will be 7.7% GDP entering the documents of the Ministry of Finance.
“Significant resources are provided for the restoration of natural resources,” the document says, but the amount of expenditure is not specified. The leadership of the Donetsk and Lugansk People’s Republics previously assessed the need for financing in 3.5 trillion rubles. Different cities and districts of Donbass were assigned to the regions of Russia. A similar patronage model after the annexation of Crimea. A number of regions pay their own expenses for construction and repair work, election RTVI.
The announced mobilization will cost the Russian economy 0.25% of GDP, appreciated Bloomberg economist Alexander Isakov. The decline of the Russian economy is accelerating from 3.5% to 3.75%, mainly due to the departure of workers and the flight of some qualified specialists abroad. Official forecast of the Ministry of Economic Development more optimistic — GDP decline by 2.9% in 2022.
The budget for 2023 was drawn up with a deficit of 2.9 trillion rubles. (2% of GDP), for 2024 – with a deficit of 1.4% of GDP, for 2025 – 0.7%. Closing the “hole” in the budget is implied by withdrawals.
Russia will increase its public debt by 43% – from 20.9 trillion in 2021 to 29.9 trillion rubles. in 2025, follows from the document of the Ministry of Finance. The volume of the National Welfare Fund (NWF) will be halved in 2024 to 5,947 compared With RUB 13,565 trillion at the end of 2021.