Russia increases war spending by nearly 70% – Bloomberg
Russia is set to increase military spending by almost 70%, to RUB 10.8 trillion (roughly US$113 billion).
Source: Bloomberg with reference to the draft Russian budget for 2024
In 2023, RUB 6.4 trillion (US$66.6 billion) was allocated for the war. In the year before the war, 2021, Russia's defence spending amounted to RUB 3.6 trillion (US$37.5 billion). And in 2024, Russia is set to spend RUB 10.8 trillion (US$112.4 billion) on the war with Ukraine.
Thus, the share of military spending in relation to Russia's GDP will increase to 6% next year (it is presently 3.9% and was 2.7% prior to the invasion).
Furthermore, in 2024 military spending will occupy the largest share in the budget for the first time. In particular, it will exceed spending on "Social policy", which includes pensions and state benefits. They will increase by only 15%.
According to Bloomberg, secret expenditure items will increase even more: from RUB 6.5 trillion (US$67.6 billion) to RUB 11.1 trillion (US$115.5 billion) - about a third of all budget expenditure.
The rise in classified spending shows the Kremlin's intentions to hide the real costs of the war in Ukraine, writes Bloomberg.
At the same time, despite sanctions and the hike in military spending, the Russian government expects budget revenues to exceed RUB 35 trillion (US$364.3 billion), which is 22% more than in 2023.
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