Military budget of the Russian Federation

Russia to Spend $650Bln on Arms Purchases by 2020


CHISINAU, September 3 (RIA Novosti) – Russia will spend $650 billion for the rearmament and modernization of its armed forces up to 2020, Russian Deputy Prime Minister Dmitry Rogozin said Tuesday.

Those funds will be spent only on the procurement of arms and military equipment, he said, adding that another $100 billion would go toward the technical modernization of defense enterprises. He also said Russia’s missile- and aircraft-manufacturing industries would be moved to the country’s eastern regions.

His remarks appear to be a little bit out of sync with a budget-optimization report released by the Finance Ministry earlier that day, suggesting that by putting off certain defense expenditures until 2016, the federal budget could save between 250 billion rubles ($7.4 billion) and 1.155 trillion rubles ($34.5 billion) within the next three years.

In June, Finance Minister Anton Siluanov said defense spending priorities should be shifted from arms procurement to personnel and infrastructure. A month later, a deputy finance minister said the idea was not to cut defense spending, but optimize it.

The Russian government has reportedly allocated 20 trillion rubles ($640 billion) for a comprehensive rearmament of the Armed Forces that will see the share of modern weaponry reach 30 percent by 2015, and surpass 70 percent by 2020.


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The structure of expenditure in the budget for the years 2014-2016 do not take into account all the requirements of the law and the decision of the management of the country on the content of the Armed Forces of the Russian Federation and the social protection of servicemen. This was today told reporters the head of the Duma Committee on Defense Vladimir Komoedov / Communist /.

He commented on the conclusion of the committee submitted to the House by the government draft federal budget for 2014 and the planning period of 2015 and 2016. In particular, the defense committee recommended the State Duma to adopt the draft of the main document of the country in the first reading, but considers it necessary in its preparation for the second reading to take into account the allocation of additional budget appropriations for a number of directions.

Thus, according to the "National Defense" in 2014, "provided budget funds to address the key issues of the Armed Forces," said Komoedov. "Including the further upgrading to new models of weapons, military and special equipment, social protection of servicemen and other tasks," - he explained.

Budget allocations for the "National Defense" on the years 2014-2016 are provided in amounts of about 2.5 trillion, 3 trillion and 3.4 trillion rubles, respectively. The growth of budget compared to the previous year, provided by 18.4%, 21.6% and 11.6% respectively in nominal terms.

In the years 2014-2016 for the payment of money allowances to servicemen provided 372.1 billion rubles and 417.7 billion rubles and 454.0 billion rubles / in 2013 - 341.9 billion rubles / payroll civilian personnel - 154.1 billion rubles , 159.9 billion rubles and 159.9 billion rubles, respectively.

At the same time, the Defence Committee notes that the draft budget appropriations for salary increases for military posts and salaries for servicemen, military personnel are not provided. According to the parliamentarians, "in order to implement the provisions of the said Act and to avoid infringing on the rights guaranteed to them by the military government indexation allowance is necessary to provide additional budgetary allocations for such indexing."

For payment and storage of special fuel and lubricants in 2014 provided 59.7 billion rubles, in 2015 - 62.9 billion rubles, in 2016 - 62.9 billion rubles.

In the event that appropriations be limited to these figures, the Ministry of Defense "will be forced to reduce the amount of oil purchased for 422 thousand tons, and reduce the number of actions performed combat training at 20-30%, including flight crews on the fly - by 20%, to train engineers drivers of armored vehicles - 30%, driver training vehicles - 25%, the number of ships involved in conducting training exercises in the world's oceans - by 40%.

Thus, the defense committee believes that the need for budgetary allocations for the payment of special fuels and lubricants under the SDO for the years 2014-2016 for the Russian Armed Forces is 69.0 billion, 72.0 billion and 73.9 billion rubles, respectively.

Also, deputies believe, due to the increased intensity of tasks as part of the protection of Russia's maritime and counter piracy / from the experience of 2013 / must also provide - beyond the GOZ - about 2.1 billion rubles, and only provide for these purposes about 3 mldr rubles / 2014 stands at 969.8 million rubles /.

In addition, the Committee noted that the amount of funding provided for the maintenance and operation of infrastructure does not allow for the maintenance of facilities in good condition and provide them with the necessary public services. "In this connection, an increase in accounts payable to suppliers of heating, hot and cold water supply, the provision of electricity at the municipal and regional level," - warn MPs.

Budget allocations for the "National Defense" on the years 2014-2016 are provided in amounts of about 2.5 trillion, 3 trillion and 3.4 trillion rubles, respectively. The growth of budget compared to the previous year, provided by 18.4%, 21.6% and 11.6% respectively in nominal terms.

Austin wrote:In the State Duma asked to provide the budget for the years 2014-2016 more money on defense

Budget allocations for the "National Defense" on the years 2014-2016 are provided in amounts of about 2.5 trillion, 3 trillion and 3.4 trillion rubles, respectively. The growth of budget compared to the previous year, provided by 18.4%, 21.6% and 11.6% respectively in nominal terms.

1 Trillion Roubles is ~ $30.833 billion , Based on this calculation Defence Budget for Russian Armed Forces from 2014-2016 is

2014 ---> 2.5 Trillion Roubles  ---->  $ 77 Billion
2015 ---> 3   Trillion Roubles  ---->  $ 92 Billion
2016 ---> 3.4 Trillion Roubles  ----> $  104 Billion

TR1 wrote:

Austin wrote:In the State Duma asked to provide the budget for the years 2014-2016 more money on defense

Budget allocations for the "National Defense" on the years 2014-2016 are provided in amounts of about 2.5 trillion, 3 trillion and 3.4 trillion rubles, respectively. The growth of budget compared to the previous year, provided by 18.4%, 21.6% and 11.6% respectively in nominal terms.

1 Trillion Roubles is ~ $30.833 billion , Based on this calculation Defence Budget for Russian Armed Forces from 2014-2016 is

2014 ---> 2.5 Trillion Roubles  ---->  $ 77 Billion
2015 ---> 3   Trillion Roubles  ---->  $ 92 Billion
2016 ---> 3.4 Trillion Roubles  ----> $  104 Billion

Too damn much for peacetime, when the economy isn't increasing by a similar %.

Hopefully the money at least goes to industry heavy, job producing purchases.

"The funds we allocate to the rearmament of the army and navy, to modernize the military-industrial complex, as you know, is unprecedented - they reach figures in 23 trillion rubles - Putin said. - In the next decade, the country's defense companies will be fully loaded with orders, can upgrade its manufacturing base and create quality jobs. "

The President recalled that DIC employs more than 2 million people, and with family members - seven million people. "At the specialists will have a stable, well-paid jobs, and hence prosperity in families" - the president said.

However, he said that should already be thinking about how to be loaded defense companies after SDO in 2020. According to him, it is inconceivable that these companies were not in demand. "I ask the Military Industrial Commission to submit proposals in this regard to our company to timely switch to issue demand on our market and foreign civilian products", - concluded the president.

"At the moment in the Russian army realized the state armaments program 2011-2020, which involves an unprecedented funding for upgrading and development of the Russian Armed Forces - more than 20 trillion rubles. According to this program, it is assumed that by 2020 the share of modern weapons systems and military Technology in the Russian army will reach 70%, "- said Deputy Minister of Defence previously Yuri Borisov.

Budget of the Ministry of Defence in the current year after all corrections amount to 2.3 trillion rubles., Said Vladimir Putin in November. The President stressed that the state allocates these funds to defenses were provided for the long term.
Guilty of disrupting the answer ruble

December 3, Vladimir Putin signed a law on fines to 1 million rubles. for the failure of the state defense order, passed by the State Duma on November 22 and approved by the Federation Council on November 27.

Failure to comply with the law in deciding to hold a private auction is subject to penalty for officials from 30 thousand to 50 thousand rubles. The same penalties provided for violation of the procedure for determining the initial or maximum cost of the state contract for the SDO, terms of placing orders for goods and works, goods and payment of the contract in the field of defense procurement. For refusing the sole supplier of a state contract for the SDO will be fine for officials from 30 thousand to 50 thousand rubles., For legal entities from 300 thousand to 1 million rubles.

The law also increases the statute of limitations for administrative liability for violation of the mandatory requirements for defense products from three months to three years, the obligation to examine such cases are assigned to the Federal Service for Defense Contracts (Rosoboronzakaz) and its territorial bodies.

Austin wrote:Some times I wonder how Russia has to struggle to make and spend money worth $650 billion in  a decade inspite of having a growing economy though slowly and low debt.

While US can afford to spend $600 + billion in a year and has been doing that for a decade inspite of having a huge debt and many economical problem.

The difference cant be more unique !

zg18 wrote:

Austin wrote:Some times I wonder how Russia has to struggle to make and spend money worth $650 billion in  a decade inspite of having a growing economy though slowly and low debt.

While US can afford to spend $600 + billion in a year and has been doing that for a decade inspite of having a huge debt and many economical problem.

The difference cant be more unique !

Dollar is the reserve currency of the world and oil currency , it allows US to commit monetary and fiscal abuse no other country can. Besides 640$ billion in Russia worth a lot more than in the US!

MOSCOW, September 17 (RIA Novosti) – Russian military spending will grow in 2015 as planned despite the economic problems the country is currently facing, the Vedomosti newspaper reports Wednesday citing a note to the draft 2015-2017 federal budget.

The national defense allocations for the federal budget are planned to increase by 21.2 percent next year, reaching 3.032 trillion rubles ($79 billion).

"This means real growth in defense spending, since, according to the draft, inflation is expected to stand at 6 percent in 2015. Meanwhile, in 2016 and 2017 the real growth rate in military spending will be negligible and close to inflation: 7.8 percent in 2016, reaching 3.23 trillion rubles [$84 billion], and 4 percent in 2017, reaching 3.36 trillion rubles [$87 billion]," Vedomosti reports.

MOSCOW, September 17 (RIA Novosti) – Russian military spending will grow in 2015 as planned despite the economic problems the country is currently facing, the Vedomosti newspaper reports Wednesday citing a note to the draft 2015-2017 federal budget.

The national defense allocations for the federal budget are planned to increase by 21.2 percent next year, reaching 3.032 trillion rubles ($79 billion).

"This means real growth in defense spending, since, according to the draft, inflation is expected to stand at 6 percent in 2015. Meanwhile, in 2016 and 2017 the real growth rate in military spending will be negligible and close to inflation: 7.8 percent in 2016, reaching 3.23 trillion rubles [$84 billion], and 4 percent in 2017, reaching 3.36 trillion rubles [$87 billion]," Vedomosti reports.

Austin wrote:Russian Military Spending to Increase Next Year Despite Sanctions - Reports

MOSCOW, September 17 (RIA Novosti) – Russian military spending will grow in 2015 as planned despite the economic problems the country is currently facing, the Vedomosti newspaper reports Wednesday citing a note to the draft 2015-2017 federal budget.

The national defense allocations for the federal budget are planned to increase by 21.2 percent next year, reaching 3.032 trillion rubles ($79 billion).

"This means real growth in defense spending, since, according to the draft, inflation is expected to stand at 6 percent in 2015. Meanwhile, in 2016 and 2017 the real growth rate in military spending will be negligible and close to inflation: 7.8 percent in 2016, reaching 3.23 trillion rubles [$84 billion], and 4 percent in 2017, reaching 3.36 trillion rubles [$87 billion]," Vedomosti reports.