In 2024, Russia intends to increase its military spending by 70%.

The secret government expenditures. Which also include the unique benefits given to the families of slain troops. Would increase by twofold. For the first time, social policy have been surpasse by defense.

The discussions surrounding the Russian Federation’s 2024 budget. Provide confirmation for anyone who needs it that the Kremlin. Intends to gear up for a protracted conflict: Moscow is increasing its financial resources to do this. Putin’s administration does not refute the proposed. Estimates released by Bloomberg on Friday, September 22.  The Russian government plans to spend 10.8 trillion rubles (€107 billion). Or 6% of GDP, on defense in the upcoming year.

The astonishing gain of about 70%: 3.9% of Russia’s GDP. Or 6.4 trillion rubles (63 billion euros) is spend on defense in 2023 on a war budget. Military expenditures amounted to 2.7% of GDP in 2021. For comparison, the US defense budget is anticipate to increase by 3.2% in 2024 to $842 billion (€795 billion).

Read More: Can Ukraine survive without Polish military assistance?

Discretionary spending

Journalist Farida Rustamova remark that for the first time in its history, Russia is set to spend more on defense than on social policy, a fairly broad budget item that includes pensions (7.5 trillion rubles or €74 billion). This conclusion is even more unexpected considering that March 2024 will see a presidential election, which is typically a time of high social spending.

The Russian government chose to maintain the status quo the day after a stunning interest rate increase and with the currency still at an all-time low. President Vladimir Putin met with members of the administration and Elvira Nabiullina, a representative of the Russian Central Bank, on Wednesday, August 16, to discuss strategies for halting the depreciation of the national currency.

No press statement is release following the meeting as a reflection of the delicate nature of the subject. However, the most extreme proposal, which is support by Finance Minister Anton Siluanov, to require exporting enterprises to convert nearly all of their export revenues into rubles within 90 days, was abandoned, the business newspaper Vedomosti said on Thursday morning. Such a policy, which would tighten existing stringent regulations on capital flows, was reportedly seen as too risky to the economy’s efficient operation.

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