The Russian President has approved a record budget increase of around 30% for military spending in 2024, reaching 36.6 trillion rubles (€376.7 billion).
ADVERTISEMENTVladimir Putin has officially endorsed a substantial increase in military spending, approving draft budget plans that allocate approximately 30% of fiscal expenditure to the armed forces in 2024.
The signed budget, spanning the next three years, sees a remarkable surge in spending, reaching 36.6 trillion rubles (€376.7 billion) in 2024 with an expected deficit of 1.595 trillion rubles (€16.4 billion).
The allocation marks a significant uptick in defence investment, with spending on defence and security combined expected to constitute around 40% of the total budget expenditure next year.
This surge amounts to an almost 70% increase in defence spending compared to 2023, reflecting Russia's unwavering commitment to its war in Ukraine.
39% of all federal spending in 2024 directed to defence - estimate
Russia also set out an ambitious 2024 revenue target of 35.1 trillion rubles (€360.7 billion), which underscores the country's economic strategy.
Analysts, however, caution that optimistic projections might necessitate a potential increase in business taxes to meet revenue targets.
The budget plans, previously approved by both houses of parliament—State Duma and Federation Council—have been shrouded in secrecy, with part of the allocations concealed to prevent scrutiny of military plans and operations in Ukraine.
Independent journalists Farida Rustamova and Maksim Tovkaylo estimate that approximately 39% of all federal spending in 2024 will be directed towards defence and law enforcement.
Bigger budget as war continues
The budget's passage comes against the backdrop of Russia's prolonged military operation in Ukraine, prompting Vyacheslav Volodin, chairman of the State Duma of the Russian Federation, to assert that the budget was specifically crafted to fund the military and counter the repercussions of international sanctions imposed since Russia's deployment of troops into Ukraine in February 2022.
As Russia steers a significant portion of its budget towards military initiatives, some anticipate potential challenges in the long-term.
Record-low unemployment, higher wages, and targeted social spending are seen as strategies to mitigate domestic impacts. However, questions linger about the sustainability of this economic pivot.
This budget approval underscores Russia's steadfast commitment to its military pursuits, even as the international community closely monitors the developments in the ongoing conflict in Ukraine.
