Page 72 - RusRPTNov23

Under the plan, defence spending will comprise 6% of the country’s gross domestic product in 2024, up from 3.9% in 2023 and 2.7% in 2021, before the Kremlin’s invasion of its neighbour. Expenditure on classified or unspecified items is forecast to nearly double, as the war continues to reshape Russia’s finances and economy.
The budget provides first and foremost for the needs of the army to conduct the war and for the defence industry, Siluanov said. “The second priority is technological and infrastructure development. The third is fulfilling obligations to the state and its citizens,” he said.
Russia’s draft budget assumes war conditions will continue for the next three years, and includes stable funding for drones and the development of industries that have suffered under sanctions or from the sudden disappearance of inputs sourced from abroad. Its war-related industries have already seen a boom, with sectors producing military goods expected to increase output by almost a third in 2023, according to government forecasts.
“The volume of resources was determined jointly with the security agencies and takes into account the need to achieve the objectives and goals the president set for the special military operation,” Siluanov said referring to Russia’s invasion.
Main parameters of 2021-2023 federal budget
2020
2021
2022
2023
Revenues RUB trillion
17.9
18.77
20.64
22.26
Expenditures RUB trillion
22.6
21.5
21.9
23.7
72 RUSSIA Country Report November 2023 www.intellinews.com