Russian Finance Minister Anton Siluanov claims that to enable the military to carry out its tasks, other expenditure has been reduced by about 10 percent.
In the 2024 budget, the Kremlin has planned the highest defense spending since Soviet times: 10.7 trillion rubles, which translates into more than 464 billion złoty at the current exchange rate. That is no less than 29.5 percent. all expenses. Compared to the current year, the financing of the army and military production will increase by 70%, and compared to the pre-war year 2021, it will be three times higher.
Siluanov announced that all the needs of the armed forces related to their tasks in the framework of the “special military operation” – as Moscow calls the war against Ukraine – have been ensured.
As part of the “cutting” of about 10%. other costs 6 percent less will be allocated to “supporting the national economy”. Tax expenditure on health care will also decrease. The reduction from 321.3 billion rubles to 289.9 billion rubles represents approximately 10%. reduction of resources.
Russia and Western sanctions
In response to Russia’s invasion of Ukraine, the West has introduced a number of economic sanctions against Moscow. In December, the European Union accepted the twelfth package of sanctions. Contrary to what many war commentators believe, the sanctions have not destroyed the Russian economy, but they have had a negative impact on state finances.
The head of Russia’s central bank, Elvira Nabiullina, said last week that the most painful consequence of Western sanctions on Russia is the restriction of international payments. Another problem is the freezing of private investors’ assets.
According to her, it cannot be said that the Russian Federation “managed to respond to all challenges” and solve all problems caused by sanctions, but she is optimistic about the future development of the financial sector.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
