Page 11 - RusRPTJun24

However, spending on the 12 National Projects that were launched in 2019 has also been ramped up. Belousov played a leading role in drawing up that plan which has recently been dramatically expanded under National Projects 2.1.
“While increasing our defence and security expenditures, we bear in mind that all our social obligations to the people must be fulfilled, and that our national development goals must be achieved in all spheres, including in social protection,” Russian President Vladimir Putin said at a meeting with his military district commanders on May 16.
Putin explained he was referring to education, healthcare, support for veterans, pensions and the like.
“All this must certainly be done while the growing defence spending is growing. At the same time, we see and understand that growing defence and security expenses are also intrinsically connected, one way or another, with civilian industries, which is boosting economic development as a whole and increasing the number of jobs (the unemployment rate is currently at a historic low in the country),” Putin added. “However, this connection between “guns” and “butter” must be organically incorporated into the general development strategy of the Russian state.” While military spending has overtaken social spending for the first time ever, spending on the National projects is already equivalent to a quarter of what is being spent on defence and one of the budget’s biggest expenditures.
The total spending on the military this year is slated to be RUB12.8 trillion ($140) in the current budget plan, up nearly a third (29%) from last year’s RUB6.58 trillion ($84bn) and RUB4.7 trillion ($75bn) in 2022.
“Andrei Belousov has been appointed defence minister, not least because of the growing defence expenses. I would like to remind you that the Soviet Union’s aggregate defence and security spending amounted to approximately 13% [of GDP] in the mid-1980s. In 2024, our total spending on defence and security will be about or slightly more than 8.7%. The approximate figure will be 8.7%. This is less than the 13% the Soviet Union spent, but it is still a considerable sum and a major resource, which we should use sparingly yet effectively,” Putin said.
Andrei Belousov had been Minister of Economic Development and a president’s aide in the Presidential Executive Office, and for the past few years he was First Deputy Prime Minister in charge of economic matters.
"It goes without saying that he knows very well what should be done to incorporate the economy of our defence and security sector, and the Defence Ministry as its core element, into the national economy. This is extremely important. What I mean is that it will determine the innovative development of our industries with due regard for our economic and budget capabilities," Putin added.
The danger the Russian economy faces is long-term stagnation. As a lot of civilian production has been switched to military output and capacity utilisation
11 RUSSIA Country Report June 2024 www.intellinews.com