The reality is that reduced funds wont kill any programmes, it will just extend deadlines and delay some programmes.
Certain programmes actually benefit from a delay... the Mi-28NM of 2017 is much better than the Mi-28A of 1989.
George1 wrote:Russian defense spending in 2018 will be reduced
http://bmpd.livejournal.com/2788575.html
JohninMK wrote:
This is a version in English. Very interesting and long article covering all the good bits. These are the first paras, more at link
In the current issue of the journal Expert, an interview with Alexei Khazbiev with Deputy Director of the Center for Analysis of Strategies and Technologies Konstantin Makienko was published, dedicated to the financing and priority areas of the State Arms Program (GPV) until 2025, as well as military-technical cooperation between Russia and foreign countries.
In September, President Vladimir Putin is expected to approve the new State Arms Program (GPV) until 2025. But it is already clear that its funding will inevitably have to be sharply reduced. At first, our military demanded that they allocate about 30 trillion rubles for the re-equipment of the army and navy, but then reduced their requests to 22 trillion. Nevertheless, even such an amount seemed excessive to the Ministry of Finance, and after tough picks in the government, the financiers cut it to 17 trillion rubles. We note that this is almost 3 trillion rubles less than is spent on the current GPO-2020. But the most important is the redistribution within the new program of expenditures on certain types of armed forces and the army. If till now our naval commanders literally bathed in money, and the Ground Forces and the Airborne Forces were in the position of poor relatives, now these roles will be reversed to the exact opposite. So, in the framework of the still active Navy program, 4.7 trillion rubles were allocated, and now the fleet will receive only 2.6 trillion rubles. But the financing of the Army and Airborne Forces will increase from 2.6 trillion rubles to 4.2 trillion rubles, which is almost a quarter of the total costs of the new program. Such an increase in expenditures under this heading is due to the tense situation in Ukraine, Central Asia and Syria, as well as the need for massive purchases of armored platforms of a new generation - Armata, Kurganets and Boomerang. About what other equipment we need to create and buy, how to increase the sales of Russian arms in the foreign market and whether under our current conditions our defense industry can conduct a conversion, Konstantin Makienko, deputy director of the Center for Analysis of Strategies and Technologies, told in an interview to Expert .
- How justified and expedient is the drastic reduction in expenditures under the GPV until 2025 in the current situation?
- In itself, the reduction in spending on the purchase of weapons and military equipment is justified and inevitable. First, during the implementation of the current state program, there will be significant saturation with modern or new weapons in several financially capacious segments. By 2020, for example, five of the eight strategic submarines of the Borey class and three of the seven Ash-class submarines should be built. Percentage of eighty will be covered by the requirements of the VCS for tactical aviation and helicopters. Not a single SPG in the post-Soviet period has been performed as successfully as the current one. Even if the target indicator - equipping troops with new equipment by 70%, is not achieved, it can already be safely asserted that this indicator will make up at least 60-65% for most segments. One has only to bear in mind that the concepts of "new" and "modern" weapons are not identical. For example, the MiG-29SMT fighters delivered to the military reconnaissance station are, without a doubt, new-generation cars built without the use of production reserves. But are modern aircraft, the armament system of which is built on the basis of a radar with mechanical scanning of the beam, is an open question.
We must understand that the GPO-2020 is successfully implemented in an environment of economic stagnation, and in some years both a recession and a sharp drop in prices for hydrocarbons. But this success created the prerequisites for reducing the volume of GPV-2025. Anatoly Serdyukov and Nikolay Makarov had strong arguments on their hands in their polemics with Alexei Kudrin about the amount of necessary funding for the current program. Today, it is much more difficult for Sergei Shoigu and Yuri Borisov to prove the need to save the costs of purchasing arms and military equipment in the same volume, as the country's financial capabilities have significantly decreased. GPV-2020 was typed at an oil price of about one hundred dollars per barrel, today this price is even nominally twice as low. That is, on the one hand, the country can not spend money on the purchase of equipment in the same volume, and on the other - this is no longer an urgent need, as in 2009.
https://translate.google.ru/translate?sl=ru&tl=en&js=y&prev=_t&hl=ru&ie=UTF-8&u=http%3A%2F%2Fbmpd.livejournal.com%2F2798498.html&edit-text=&act=url
T-47 wrote:The cut is in accordance with the $$ value I think. Which doesn't really represent the actual budget.....
franco wrote:T-47 wrote:The cut is in accordance with the $$ value I think. Which doesn't really represent the actual budget.....
I don't think the Russian government considers the $$ value very much.
For comparison: in 2017, defense spending amounted to more than 1 trillion rubles. While the Armed forces of the Russian Federation received 867,6 billion. At the same time, the military budget of NATO in 2017 amounted to more than $946 billion.
According to the document, in subsequent years, costs will be reduced. So, in 2019 will be allocated acabaron 860,6 billion, and in 2020 — 869,1 billion.
The draft budget provides for the allocation of Armed forces in 2018 771 billion 114 million roubles, in 2019 753 billion 946 million rubles in 2020 — 771 billion 917 million rubles.
Earlier it was reported that the defense Ministry of Japan will ask for a record military budget in the amount of 5.25 trillion yen ($48.2 billion) because of the threat from North Korea. Part of the funds will be spent on the purchase of the US missile defense Aegis Ashore.
miketheterrible wrote:https://vpk.name/news/192668_rossiya_sokratit_rashodyi_na_nacionalnuyu_oboronu_v_2018_godu.html
For comparison: in 2017, defense spending amounted to more than 1 trillion rubles. While the Armed forces of the Russian Federation received 867,6 billion. At the same time, the military budget of NATO in 2017 amounted to more than $946 billion.
According to the document, in subsequent years, costs will be reduced. So, in 2019 will be allocated acabaron 860,6 billion, and in 2020 — 869,1 billion.
The draft budget provides for the allocation of Armed forces in 2018 771 billion 114 million roubles, in 2019 753 billion 946 million rubles in 2020 — 771 billion 917 million rubles.
Earlier it was reported that the defense Ministry of Japan will ask for a record military budget in the amount of 5.25 trillion yen ($48.2 billion) because of the threat from North Korea. Part of the funds will be spent on the purchase of the US missile defense Aegis Ashore.
Franco, what do you make of this? There seems to be major issues with the reporting of budgets. If the budget was so low, how is Russia spending the 2.8T rubles then of the defense budget? Or is procurement not part of the Armed forces budget?
The Russian defence budget is expected to be cut by approximately 5.0% to RUB2.73 trillion (USD47.13 billion) in 2018, according to budgetary guidance published by the Ministry of Finance. The reduction in spending is in line with plans laid out under the previous 2017–19 budget.
According to the document outlining the main directions of budgetary policy for 2018–20, spending on National Defence is expected to receive a 3.7% increase in 2019 to reach RUB2.83 trillion before a further marginal 0.5% cut in 2020 to RUB2.82 trillion. The new plans are in line with previous projections for 2018. However, the defence allocation for 2019 is around 0.5% higher than previously expected.
MOSCOW, September 29. / TASS /. Expenditures on national defense in 2018 will amount to more than 2.77 trillion rubles, which is 100 billion rubles less than in this, according to the accompanying documents to the draft budget for 2018-2020, introduced September 29 in the State Duma.
"Budget allocations for the section" National Defense "in 2018 will amount to 2 771 784.6 million rubles, in 2019 - 2 798 497.4 million rubles and in 2020 - 2 807 994.3 million rubles. GDP of the corresponding year, the share of expenditures in the "National Defense" section will make up 3.1% in 2017, 2.8% in 2018, 2.7% in 2019 and 2.5% in 2020, " documents. This year, budget expenditures on national defense amounted to more than 2.87 trillion rubles.
The share in the total volume of federal budget expenditures under the section "National Defense" in 2018 and 2020 compared to 2017 (17.0%) will decrease and amount to 16.8%, in 2019 will increase and amount to 17.1%.
"The budget allocations envisaged in the draft law in comparison with the volumes approved by Law No. 415-FZ in 2018 were increased by 42,633.4 million rubles, in 2019 reduced by 17,323.8 million rubles, in 2020 compared to the volumes , stipulated by the draft law for 2019, increased by 9,496.9 million rubles, "the text of the document says.
It follows from the accompanying documents that along with general approaches to the drafting of the federal budget for the change in expenditures under the "National Defense" section, the increase in budget allocations for the current maintenance of the Russian Armed Forces, including food, transportation, infrastructure maintenance, in 2018 by 62 , 5 billion rubles, a decrease in the budget allocations of the Ministry of Defense of Russia, provided for the payment of contracts for the provision of utility services in 2018 by 50.253 billion rubles, and in 2019 - by 50.677 billion rubles.
The budget allocations reserved for the formation of the draft federal budget for 2018 and for the planned period 2019 and 2020 under the section "National Defense" will be directed in particular to ensuring the fulfillment of international obligations for the deployment of Russian military units in the territories of foreign states in 2018-2020 (in the amount of 4.4 billion rubles annually).
The government proposed to increase total defense spending in 2017 by 179.6 billion rubles - to 3.05 trillion rubles (3.3% of GDP). This follows from the draft amendments to the budget, submitted to the State Duma.
Growth of expenses falls on the closed part. Expenditures for all other areas, including social policy, education and health, are planned to be reduced by 54 billion rubles.
As RBC reminds, a year ago, when the Ministry of Finance presented a three-year budget consolidation program, expenditures for the "National Defense" section for 2017 were planned at 2.84 trillion rubles, a quarter lower than in 2016. But first in the summer the government increased the military budget by 40 billion rubles, and now offers to add another 180 billion rubles.
The last time the defense spending of the federal budget was below the level of 3 trillion rubles in 2014. In 2015, they rose to 3.2 trillion rubles, and last year - to a record 3.78 trillion. At the same time about 800 billion rubles in 2016 fell on a one-time article - early repayment of bank loans to the defense industry, taken under the government's guarantees in the framework of the state defense order. Without taking into account these payments, the national defense spending last year would not exceed 3 trillion rubles.
The additional appropriation of 2017 for the defense sector is almost 100% concentrated in the subsection "Armed Forces", they will spend 2.3 trillion rubles on the results of the year. The head of the military economics laboratory of the Gaidar Institute Vasily Zatsepin believes that this may be additional funds for the state defense order. Andrei Frolov, editor-in-chief of the magazine Export of Arms, agrees with him, but he did not rule out that the reason could be the operation in Syria.
By the autumn amendments, the government increases the expenditure part of the budget by 125.7 billion rubles. "But the bulk of these funds are distributed according to closed articles of the federal budget. And we do not know what exactly this money will go to, "said First Deputy Chairman of the State Duma Committee on Budget and Taxes, justice Alexander Remezkov in a commentary distributed by his assistants.
Along with the section "National Defense", the most significant increase is allocated to the mass media (by 3 billion rubles) and interbudgetary transfers (by 37 billion rubles). Expenditures for social policy are proposed to be reduced by 49.6 billion rubles, healthcare - by 5.3 billion rubles, education by 10.2 billion rubles, environmental protection by 3.1 billion rubles, housing and communal services by 9 billion rubles. According to the government, the total federal budget expenditures in 2017 will amount to 17.007 trillion rubles, and the budget deficit is 2.5% of GDP.
October 11, deputies will discuss the draft budget with Russian Deputy Prime Minister Dmitry Kozak and Finance Minister Anton Siluanov.
franco wrote:MOSCOW, Oct. 17 - RIA Novosti. Russia in the current situation can not give up current spending on defense, these spending are absolutely justified, said Finance Minister Anton Siluanov.
The government approved the draft budget until 2021
"I understand perfectly well that in the current situation we can not give up defense spending .... Today spending on defense and security in the budget is about a third of all expenditures, this is a big share, but they are absolutely justified by the fact that our state is a nuclear power , our state has to reflect all those political attacks that are on our country, "Siluanov said at a meeting with the faction of the" Fair Russia "party in the State Duma.
"The modernized, strong armed forces are making the state strong today," he added.
ZoA wrote:franco wrote:MOSCOW, Oct. 17 - RIA Novosti. Russia in the current situation can not give up current spending on defense, these spending are absolutely justified, said Finance Minister Anton Siluanov.
The government approved the draft budget until 2021
"I understand perfectly well that in the current situation we can not give up defense spending .... Today spending on defense and security in the budget is about a third of all expenditures, this is a big share, but they are absolutely justified by the fact that our state is a nuclear power , our state has to reflect all those political attacks that are on our country, "Siluanov said at a meeting with the faction of the" Fair Russia "party in the State Duma.
"The modernized, strong armed forces are making the state strong today," he added.
What I imagine happened several hours before before this Speech:
Siluanov sits in his expensively decorated office ostensibly preparing for a government meeting to start soon. He is not really working, just fiddling some random documents while his mind is on a diner to be had after the meeting. He's going have big fat expensive meal with most influential members of Russian liberal elite, like Kudrin and Gref, in most prestigious an luxurious restaurant in Moscow. And following that he and his cronies plan to retire in to Moscow suburb dacha where entertainment will be provided by most beautiful and expensive prostitutes Moscow can provide.
His daydreaming is suddenly interrupted by rude ringing of the phone.
"Who could be bantering me now!" angry taught shoots in his mind.
He lackadaisically lifts the office phone and utters condescendingly in the microphone:
"Yes! What do you what now?!
Voice on the other side is his secretary, and it sounds shaken, almost frighten.
"M.M..Minister! president's office is on the phone! President wants to talk to you!"
Arrogance and condescension instantly dispersers of his face and tone. Confusion and concern comes instead.
"P..P.. president!" Few seconds of uncomfortable pause follow "Did..did he say why he is calling?"
Secretary's voice gets confused as she thinks why would minister assume president's assistants would tell her abut his business with the Minister.
"N..No Minister, He wants to talk to you, that's all I know! Should I connect them?!"
Few more moments of unconformable pause pass as Siluanov mind is rushed with thoughts concerning and uncertain.
Finally it utters: "Yes! YES!, Connect him immediately!"
Phone makes few mechanical sounds and then the voice on the other end appears:
"Minister Anton Germanovich Siluanov?"
Voice was not that of the president, causing additional confusion.
"Yes! Yes!" Siluanov utters with his suddenly frail voice
"OK Minister, Please wait a few moments as I inform the president you are on the line "
He says "Yes! Yes! I'll wait!!" He almost shuts that but nobody responds, just silence coming form the other side.
He waits, and waits, but no sound to be heard. Panicked thoughts are swirling in his mind "what could this be abut?" Worst is he knows it could be thousands things, indiscretions, corruptions, borderline treasons and wrecking. Any of those could spell his doom. But he realises all hope is not lost, for it this was his end, President would not be calling, but FSB would be knocking.
Finally after what seemed a hour, but was only a minute past, there was the voice on the other side:
"Hello."
It was Vladimir Vladimirovich.
Siluanov suddenly starts talking supper fast:
"Helo Mr. President! Such a pleasure hearing from you. I can't imagine why do I own the honour of your attention, but it is certainly most important. Presidential concerns, I assure you, are always top priority of this ministry and this office I, assure you. But please tell me president how are you? I hope you are well!
VVP: "That depends"
Confused pause.
AGS: "D..Depends on what?"
VVP: "On you Anton Germanovich."
One more confused pause, and then rushed panicky voice:
"President whatever you want, I assure you, will be my highest priority. I, your humble servant, and this ministry, always had only best interest of Russian Federation at our minds, whatever concerns you,I assure you, we will rush to resolve in a way most beneficial for the motherland and for you. Whatever you want, you have just to ask and no expense will be spared, it will be done with outermost haste and priority. Please President I assure you!"
Pregnant pause follows from the other side. And then steady indifferent voice:
"Anton Germanovich issues of national security have been of increasing importance during last decade with growing global instability increasingly threatening safety of Russian citizens and allies, Unfortunately some individuals serving this country did not take those concerns sufficiently seriously, like for example Mr Serdyukov, Mr Kudrin and number of Baltic fleet officers. I'd like to hear directly from you what priority you ministry places on issues of national security?
Siluanov voice brakes in utter panic:
"TOP PRIORITY MR PRESIDENT! There is no higher concern for this ministry then defence of the motherland, I assure you Mr. President! And we will redouble our affords, no, triple them, to make sure national security concerns are served first of all! I ASSURE YOU!
VVP: "Good."
Line brakes, phone produces no sound. Siluanov, in shock, as frozen stares at the office wall while clenching pone handle at the side of his head. Finally after half a minute that rigor mortis breaks with a scream.
"SECRETARY! Come in to my office this instant, we have a new speech to write NOW!
Then in panicked movements he crumples bunch of documents of his table and throws them in to a garbage bin.
eehnie wrote:Update of this comment numbers with the recently approved and proposed numbers for 2017-2020:
https://www.russiadefence.net/t24p225-military-budget-of-the-russian-federation#176903
https://www.russiadefence.net/t24p325-military-budget-of-the-russian-federation#206688
https://www.russiadefence.net/t24p325-military-budget-of-the-russian-federation#206032
https://www.russiadefence.net/t7032p50-state-armament-program-2018-2025#209893
2011 -- 1.515
2012 -- 1.812
2013 -- 2.106
2014 -- 2.49
2015 -- 3.032
2016 -- 3.889
2017 -- 3.05
2018 -- 2.772
2019 -- 2.798
2020 -- 2.808
Total 2011-2017 = 17.894 Trillion
Total 2011-2020 = 26.272 Trillion
SAP 2011-2020 projected a figure of 23 trillion rouble ( 20 Trillion of Military Budget + 3 Trillion for MIC )
SAP 2018-2025/27 projected a figure of 20 trillion rouble ( 19 Trillion of Military Budget + 1 Trillion for synchronization)
GunshipDemocracy wrote:eehnie wrote:Update of this comment numbers with the recently approved and proposed numbers for 2017-2020:
https://www.russiadefence.net/t24p225-military-budget-of-the-russian-federation#176903
https://www.russiadefence.net/t24p325-military-budget-of-the-russian-federation#206688
https://www.russiadefence.net/t24p325-military-budget-of-the-russian-federation#206032
https://www.russiadefence.net/t7032p50-state-armament-program-2018-2025#209893
2011 -- 1.515
2012 -- 1.812
2013 -- 2.106
2014 -- 2.49
2015 -- 3.032
2016 -- 3.889
2017 -- 3.05
2018 -- 2.772
2019 -- 2.798
2020 -- 2.808
Total 2011-2017 = 17.894 Trillion
Total 2011-2020 = 26.272 Trillion
SAP 2011-2020 projected a figure of 23 trillion rouble ( 20 Trillion of Military Budget + 3 Trillion for MIC )
SAP 2018-2025/27 projected a figure of 20 trillion rouble ( 19 Trillion of Military Budget + 1 Trillion for synchronization)
Taking into account that inflation is down to 3% from 12% in 2015 means it might be a bit more than before.