Putin Signs Record Spend for Military in Next Year’s Spending

Budget Plan for Next 3 Years Signed, Concerns Over Prolonged Conflict
National Budget Expands by 25% Over Three Years
39% of Next Year’s Budget Allocated to Military Expenses and Law Enforcement

In anticipation of a prolonged war in Ukraine, Russian President Vladimir Putin has signed a budget plan for the next three years. He increased spending by about 25%. Of next year’s total budget, 39% will be used for defense and law enforcement.

According to the report, Russia plans to allocate around 36.66 trillion rubles (approximately $412 billion) for the upcoming year. The Associated Press also noted that since next year’s projected fiscal revenue is expected to be 35.65 trillion rubles (approximately $400 billion), there will be a fiscal deficit of approximately 1.6 trillion rubles (approximately $20 billion).

However, Russia’s finances have recently been improving. Despite Western sanctions, unemployment has fallen, and average wages have risen. Selective spending following the outbreak of war in Ukraine and relatively less external pressure to increase military spending have also had a positive impact.

The Associated Press predicted that the economic environment, including record low unemployment, high wages, and selective social spending, would somewhat alleviate the pressure from the Russian government’s militarization of the expenditure.

However, it noted that such extensive military expenditure might pose a potential long-term financial challenge.

The AP, quoting independent Russian journalists Farida Rustamova and Maxim Topilov, clarified that Russia would allocate approximately 39% of its federal spending for the following year to defense and law enforcement budgets.

The Russian government has classified some of the budget as top secret, mindful of exposing military plans.

Vyacheslav Volodin, the speaker, stated that they had intentionally designed the budget to support the military and counteract the repercussions of international sanctions imposed following Russia’s deployment of troops to Ukraine in February 2022.

By. Kim Jun Hyung