On the military budget of Russia

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In the next three years, expenditures on national defense in Russia will amount to 4,148,700 million rubles. In 2009 they will amount to 1,277,500 million rubles, in 2010 – to 1,390,700 million rubles, in 2011 – to 1,480,500 million rubles. However, most likely these expenditures will be corrected because it is necessary to make amendments to the three-year budget for the period between 2009 and 2011. Chair of the defense committee of the Duma, Victor Zavarzin, announced that amendments to the bill “On federal budget for 2009 and for the planned period of 2010 and 2011” would be debated in the second reading at the plenary meeting of the Duma on October 17.

According to the press service of the parliamentary defense committee, in 2009 it is planned to increase financing of construction of special and military objects additionally by 24.6 billion rubles. Earlier, in the first reading, the Duma set amount of 24.7 billion rubles for 2009. Thus, taking into account the amendments the expenditures will amount to 49.3 billion rubles.

It is also planned to additionally increase allocations for material and technical procurement (clothing, food, fuel) by 39.8 billion rubles. Earlier, in the first reading the Duma set amount of 64.6 billion rubles for 2009. Together with the amendments the allocation will reach 104.4 billion rubles.

Moreover, the increase of expenditures also touched the overhaul of barracks and housing. In the first reading the Duma set 6.6 billion rubles for 2009. The amendments make provisions for increase b 3.4 billion rubles. The final amount is 10 billion rubles. In the first reading, the Duma planned 9.6 billion rubles for the period between 2010 and 2011. This amount was increased by amendments by 3.8 billion rubles to 13.5 billion rubles.

Thus, together with the amendments coordinated by the parliament members with the government the increased military budget for 2009 will amount to about 1.38 trillion rubles or 2.67% of the GDP. Of course, this is more than parameters of the military budget debated by the Duma in the first reading but this does not correspond to what has been determined by the Security Council in its resolution of August 11 of 2000. Nezavisimaya Gazeta points out that according to this document, the level of military expenditures in Russia in the next 20 years was planned at 3.21% of the GDP of the country.

It was not incidental that in its conclusion about bill No. 94777-5 “On federal budget for 2009 and for the planned period of 2010 and 2011,” the defense committee of the Duma wrote that “despite the general increase of financing of defense expenditures for the period between 2009 and 2011, insufficient financing for some key articles of the federal budget create problems in fulfillment of tasks set for the Armed Forces.” Along with this, it is said that “for the provision of more favorable financial conditions of comprehensive support of activities of the Armed Forces in the interests of fulfillment of their tasks it is necessary to make provisions for the maximum possible increase of financing of the most priority lines or to make provisions for annual additional financing of expenditures in the course of fulfillment of the federal budgets by the second reading of the bill “On federal budget for 2009 and for the planned period of 2010 and 2011.”

Information

Revenues of the federal budget for 2009 are planned at 10.927 trillion rubles (21.2% of the GDP), expenditures – at 9.025 trillion rubles (17.5% of the GDP), surplus – at 1.902 trillion rubles (3.7% of the GDP).

Revenues of the federal budget for 2010 are planned at 11.733 trillion rubles (19.8% of the GDP), expenditures – at 10.320 trillion rubles (17.4% of the GDP), surplus – at 1.413 trillion rubles (2.4% of the GDP).

Revenues of the federal budget for 2011 are planned at 12.839 trillion rubles (19% of the GDP), expenditures – at 11.318 trillion rubles (16.7% of the GDP), surplus – at 1.521 trillion rubles (2.2% of the GDP).

Parameters of the budget are based on the forecast of GDP growth by 6.7% in 2009, by 6.6% in 2010 and by 6.2% in 2011, as well as proceeding from the price of Urals crude of $95 per barrel in 2009, $90 per barrel in 2010 and $88 per barrel in 2011.

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