International•4 Aug ’23 09:48Author: BNR Webredactie
This year, Russia will more than double the amount spent on defense, according to figures seen by the Reuters news agency. More than $100 billion will be spent on military activities by 2023, mainly because of the war in Ukraine. Due to the increase, Russia will soon spend a third of the country’s total budget on its defense.
The documents seen by Reuters show that in the first half of 2023 alone, Russia will spend 12 percent, 600 billion rubles, more on defense than the 4.98 trillion rubles ($54 billion) it originally envisioned for 2023.
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Defense spending in the first six months of 2023 was 5.59 trillion rubles, 37.3 percent of the total 14.97 trillion rubles spent in that period, the document found. According to the Russian budget plan, 17.1% of the total funds will be spent on ‘National Defense’.
Russian deficit is rising sharply
Rising war costs are bolstering Russia’s modest economic recovery this year with higher industrial production, but have already pushed public finances to a deficit of about $28 billion – a figure exacerbated by declining export revenues.
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Increased defense spending could create an even bigger deficit for Moscow as it goes ahead with the “special military operation,” as Russia calls the war in Ukraine. On the other hand, the increase in military production could cannibalize other sectors and drive away private investors.
President Putin sees the Russian budget deficit increase further due to the war his country is waging in Ukraine. (AP / Associated Press)
2023-08-04 07:48:00
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