Russia's defense focus: Budget increase signals shift in priorities, minister reveals
3:36 PM EDT, October 27, 2023
The Russian State Duma has ratified the budget proposal for the years 2024-2026. "Total defense expenditures in 2024 will amount to 10.8 trillion rubles (around $5.8 billion), showing a substantial increase compared to previous years," declared Finance Minister Anton Siluanov. "We're allocating 29% of all expenditures towards our primary task - ensuring our victory," the minister added.
The project anticipates that federal budget revenues in 2024 will amount to 35.065 trillion rubles ($18 billion), in 2025 - 33.552 trillion ($17.2 billion), and in 2026 - 34.051 trillion rubles ($17.4 billion). Consequently, a budget deficit is projected throughout this three-year period, which won't surpass 1% of GDP. In 2024 it will be 0.9% of GDP, in 2025 - 0.4% of GDP, and in 2026 - 0.8% of GDP.
Russia's unprecedented military spendings
The main sources of deficit financing for 2024-2026 will be the government's domestic loans. Additionally, funds from the National Welfare Fund will serve this purpose in 2024. The total sum of domestic loans to cover the budget deficit for this three-year period will be about 4 trillion rubles annually.
Simultaneously, the peak limit of the Russian Federation's domestic public debt is projected at 26.637 trillion rubles ($13.6 billion) on January 1, 2025, 30.159 trillion ($15.4 billion) on January 1, 2026, and 34.356 trillion rubles ($17.4 billion) on January 1, 2027.
The cap on external public debt is estimated at $64 billion, $63.1 billion, and $61.2 billion, totaling approximately $69.2 billion.
Russia Asserts Confidence: "To Ensure Our Victory"
"The budget proposal for the next three years provides the financial resources necessary to address the critical issues facing the country, mainly to support citizens and the economy, guarantee security, and maintain the robust operation of state institutions," stated Finance Minister Anton Siluanov while introducing the proposal to deputies.
Correspondingly, the total defense expenditures for 2024 will tally 10.8 trillion rubles ($5.8 billion) and "will markedly rise compared to prior years", the minister proclaimed.
"29% of all budget outlays are allocated today towards our primary task - to ensure our victory. Prior to the launch of the special military operation, defense expenditures were half this size, comprising 14% of budget outlays," conveyed Siluanov.
Of note, Russia has downgraded the healthcare budget from 12.178 trillion rubles to 11.19 trillion rubles.
