Military budget of Russia explained

The military budget of Russia is the portion of the overall budget of Russia that is allocated for the funding of the Russian Armed Forces. This military budget finances employee salaries and training costs, the maintenance of equipment and facilities, support of new or ongoing operations, and development and procurement of new weapons, equipment, and vehicles. According to estimates for the 21 years from 2000, Russia increased its military budget from $9.23bn to $65.9bn, or more than 600 percent. Moscow spends more on the military than any country of the European Union.

History

In 1988 military spending was a single line item in the Soviet Union state budget, totaling 21 billion rubles (68.8 billion 1988 U.S. dollars). Given the size of the military establishment, however, the actual figure was considered to be far higher. However, in the wake of the breakup of the Soviet Union and the emergence of Russian Federation as an independent state, between 1991 and 1997 Russia's defence spending fell by a factor of eight in real prices.[1] Between 1988 and 1993 weapons production in Russia fell by at least 50% for virtually every major weapons system.

In 1998, when Russian Federation experienced a severe financial crisis, its military expenditure in real terms reached its lowest point— barely one-quarter of the USSR's in 1991, and two-fifths of the level of 1992, the first year of Russia's independent existence. However, since the rise to power of Vladimir Putin and the exposure of the poor state of preparedness amongst Russia's armed forces in the Chechen Wars, Russian military spending has rapidly increased, particularly after the 2008 Russian military reform. According to SIPRI, Russian military spending in real terms in 2012 was the highest it has been since Russian Federation's re-emergence as an independent nation, but is still far lower than the estimated military expenditure of the USSR in 1990 - its final full year of existence (US$291 billion at 2012 prices).[2] The budget expanded from 1998 until 2015, but economic problems including a sharp decline in the oil price mean it will be cut by 5.3% in 2016 despite analysts saying that large increases are required to fund the current equipment plans and accommodate high rates of inflation; the navy may be the most likely victim of cuts.[3]

In 2014, Russia's military budget of 2.49 trillion rubles (worth approximately US$69.3 billion at 2014 exchange rates) was higher than any other European nation, and approximately 1/7th (14%) of the US military budget.[4] However, a collapse in the value of the Rouble greatly reduced the dollar-value of the planned 2015 Russian military budget to US$52 billion, despite a 33% increase in its Rouble-value to 3.3 trillion.[5] Due to the ongoing crisis the planned 33% increase had to be reduced to 25.6%, meaning the 2015 Russian military budget totalled 3.1 trillion rubles. The originally planned 3.36 trillion budget for 2016 was also reduced to a planned budget of 3.145 trillion rubles, an increase of only 0.8% over 2015.[6]

Russia’s military spending in 2021 hit $66bn, says the Stockholm International Peace Research Institute (SIPRI). But even then, the US was spending $801bn a year, and other NATO members about $363bn.[7] Russia's official 2022 military budget is expected to be 4.7 trillion rubles ($75bn),[8] or higher, and about $84bn for 2023, 40% more than initial military budget announced in 2021.[9] Reuters reported that governments documents showed military spending would exceed $100bn in 2023.[10] SIPRI estimated that it would reach $140bn in 2024, making 35% of all government spending.[11]

Between 2022–2025, Russia plans to spend in total $600bn on military and the police.[8]

Russian invasion of Ukraine

Forbes Ukraine estimated in July 2022 that the 2022 Russian invasion of Ukraine had a price tag of $400 million per day.[12] In November 2022 Forbes Ukraine estimated that, in its first nine months, Russia had spent $82 billion on the invasion of Ukraine.[13] [14] [15] In 2021, the Russian military budget exceeded by a factor of 10 that of Ukraine.[16]

Unofficial estimates

Unofficial estimates typically place the total amount of military spending for the Russian Federation higher than the Russian government figures, but these calculations tend to differ between organizations. According to the IISS "By simple observation..[the military budget] would appear to be lower than is suggested by the size of the armed forces or the structure of the military–industrial complex, and thus neither of the figures is particularly useful for comparative analysis".[17]

IHS Inc. estimated the 2013 Russian military budget as being US$68.9 billion, US$78 billion in 2014, and predict a rise to US$98 billion in 2016.[18] IHS described this as a rapid increase in spending which will result in the defence budget increasing from 15.7 percent of federal expenditure in 2013 to 20.6 percent by 2016.[19]

The International Institute of Strategic Studies (IISS) estimated the 2013 Russian military budget at US$68.2 billion, a 31% rise since 2008.[20] IISS noted in their 2013 report that this meant that Russia had passed the UK and Saudi Arabia to become the world's third largest military spender, though exchange rates had also been a factor in this.[21]

The SIPRI 2017 Military Expenditure Database estimated Russia's military expenditure in 2016 at US$69.2 billion.[22] This estimate is roughly twice that of SIPRI's estimate of the Russian military budget for 2006 (US$34.5 billion).

Comparison with other countries

In 2020, China's military spend was estimated by SIPRI at $252 billion, while India was the third largest budget with $72.9 billion, followed by Russia with $61.7 billion.[23]

Absolute expenditures in USD
Country/Region Official budget (2014) SIPRI (2012)[24] IHS Inc. (2013)[25] IISS (2013)[26]
United States$716 billion[27] $682.5 billion$582.4 billion$600.4 billion
United Kingdom$56.9 billion[28] $60.8 billion$58.9 billion$57 billion
Japan$47 billion[29] $59.3 billion$56.8 billion$51 billion
People's Republic of China (PRC)$177 billion[30] $166.1 billion$139.2 billion$112.2 billion
Russian Federation$48.2 billion[31] $90.7 billion$68.9 billion$68.2 billion

See also

Notes and References

  1. Book: Austin, Greg . The Armed Forces of Russia in Asia . Alexey Muraviev . 2000 . I.B. Tauris . London, New York . 1-86064-485-6 . 155 .
  2. Web site: Toohey . Nathan . Russia's defense spending grows to third largest in the world . Moscow Times . 1 March 2014 . dead . https://web.archive.org/web/20140305133919/http://themoscownews.com/russia/20120417/189640006.html . 5 March 2014 .
  3. News: Russia's defence budget hit by slowdown . Kathrin . Hille . Financial Times . 15 October 2014 . 2014-10-28 . https://web.archive.org/web/20141020181046/http://www.ft.com/cms/s/0/f6564f36-53a3-11e4-929b-00144feab7de.html# . 2014-10-20 . live .
  4. Web site: Kazak. Sergey. Russia to Up Nuclear Weapons Spending 50% by 2016. 8 October 2013 . RIA Novosti. 1 March 2014. https://web.archive.org/web/20131008122507/http://en.ria.ru/military_news/20131008/184004336/Russia-to-Up-Nuclear-Weapons-Spending-50-by-2016.html#. 2013-10-08. live.
  5. Web site: ISACHENKOV. Vladimir. Putin Spending Big On Military Modernization Despite Russia's Economic Woes. Associated Press via Huffington Post. 8 March 2015. https://web.archive.org/web/20150310221830/http://www.huffingtonpost.com/2015/02/04/russia-military-modernization_n_6612418.html#. 2015-03-10. live.
  6. Web site: Gady. Franz-Stefan. Russia's Military Spending to Increase Modestly in 2016. www.the diplomat.com. The Diplomat. 14 January 2016. https://web.archive.org/web/20160113064914/https://thediplomat.com/2015/11/russias-military-spending-to-increase-modestly-in-2016/#. 2016-01-13. live.
  7. News: Is the west's increased defence spending even necessary? . Financial Times . 7 July 2022 .
  8. Web site: Russia to spend $600 billion on defence and security by 2025. reuters.com. 23 September 2022.
  9. Web site: Russia Reportedly Raises $13 Billion for 2023 Defense Spending. voanews.com. 19 November 2022.
  10. News: 2023-08-04 . Exclusive: Russia doubles 2023 defense spending plan as war costs soar . 2024-04-11 . Reuters.
  11. Web site: 2023-12-13 . Russia’s new budget law signals determination to see the war in Ukraine through, according to new SIPRI analysis . 2024-04-11 . . en.
  12. News: Forbes: A day of war in Ukraine costs Russia $400 million . Caliber.az . 21 July 2022.
  13. News: Forbes Ukraine: Russia has spent $82 billion on the war against Ukraine . Meduza . 25 November 2022.
  14. News: Forbes estimates Russia has spent $82 billion on war with Ukraine since Feb. 24. . The Kyiv Independent . 25 November 2022.
  15. News: За дев'ять місяців Росія витратила на війну $82 млрд – це чверть її річного бюджету. Наступного року РФ може її не потягнути. Розрахунки Forbes . Forbes.ua © ТОВ "УЯВИ!" . uk . 24 November 2022.
  16. News: Rustamova . Farida . Tovkailo . Maxim . Putin Can Afford at Least Two More Years of War . The Wilson Center . 28 September 2022.
  17. International Institute for Strategic Studies, The Military Balance 2006, Routledge, p.153
  18. Web site: February 4, 2014. Global Defence Budgets Overall to Rise for First Time in Five Years. dead. https://web.archive.org/web/20140302202539/http://press.ihs.com/press-release/aerospace-defense-terrorism/global-defence-budgets-overall-rise-first-time-five-years. March 2, 2014. 2021-03-19. news.ihsmarkit.com.
  19. Web site: Global Defence Budgets Overall to Rise for First Time in Five Years - Four of the five fastest growing defence markets in 2013 were in the Middle East; Russia grabs third place from Japan and the UK. IHS inc.. 1 March 2014. https://web.archive.org/web/20140302202539/http://press.ihs.com/press-release/aerospace-defense-terrorism/global-defence-budgets-overall-rise-first-time-five-years#. 2014-03-02. live.
  20. Web site: Russian military regains its clout. 28 February 2014 . Reuters via Japan Times. 1 March 2014. https://web.archive.org/web/20140304172835/http://www.japantimes.co.jp/news/2014/02/28/world/russian-military-regains-its-clout/#.UxGgefnxqlQ#.UxGgefnxqlQ. 2014-03-04. live.
  21. News: Marcus. Johnathan. Military spending: Balance tipping towards China. BBC News . 5 February 2014 . 1 March 2014. https://web.archive.org/web/20140304210714/http://www.bbc.com/news/world-middle-east-26054545#. 2014-03-04. live.
  22. Web site: SIPRI Military Expenditure Database . Stockholm International Peace Research Institute . 1 March 2014 . dead . https://web.archive.org/web/20140208055140/https://milexdata.sipri.org/files/?file=SIPRI%2Bmilex%2Bdata%2B1988-2012%2Bv2.xlsx . 8 February 2014 .
  23. News: McCarthy . Niall . The Countries With The Highest Military Expenditure In 2020 . Forbes . 28 April 2021.
  24. Web site: SIPRI Military Expenditure Database . Stockholm International Peace Research Institute . 2 March 2014 . dead . https://web.archive.org/web/20140208055140/https://milexdata.sipri.org/files/?file=SIPRI%2Bmilex%2Bdata%2B1988-2012%2Bv2.xlsx . 8 February 2014 .
  25. Web site: Global Defence Budgets Overall to Rise for First Time in Five Years - Four of the five fastest growing defence markets in 2013 were in the Middle East; Russia grabs third place from Japan and the UK. IHS inc.. 2 March 2014. https://web.archive.org/web/20140302202539/http://press.ihs.com/press-release/aerospace-defense-terrorism/global-defence-budgets-overall-rise-first-time-five-years#. 2014-03-02. live.
  26. Web site: Marcus. Johnathan. Military spending: Balance tipping towards China. BBC.
  27. Web site: Archived copy . 2014-05-03 . https://web.archive.org/web/20140503151754/http://comptroller.defense.gov/Portals/45/documents/defbudget/fy2015/fy2015_Budget_Request_Overview_Book.pdf# . 2014-05-03 . live .
  28. News: Porter. Henry. What budget for defence? First let's work out Britain's place in the world. Guardian. 2 March 2014. https://web.archive.org/web/20140306112515/http://www.theguardian.com/commentisfree/2013/feb/03/british-defence-spending-needs-addressing#. 2014-03-06. live. 2013-02-03.
  29. Web site: Plan for Defense Programs and Budget of Japan Ministry of Defense Overview of FY2014 Budget. Japanese Ministry of Defense. 2 March 2014. https://web.archive.org/web/20140302173329/http://www.mod.go.jp/e/d_budget/pdf/260130.pdf. 2 March 2014. dead.
  30. Web site: Branigan. Tania. China targets 7.5% growth and declares war on pollution. Guardian. 5 March 2014. https://web.archive.org/web/20140305121721/http://www.theguardian.com/world/2014/mar/05/china-targets-75-growth-and-sharp-increase-in-defence-spending#. 2014-03-05. live.
  31. Web site: Минфин России :: Бюджетная роспись . 2018-11-18 . https://web.archive.org/web/20180524223449/https://www.minfin.ru/ru/perfomance/budget/federal_budget/budj_rosp/?id_57=121706&page_id=769&popup=Y&area_id=57# . 2018-05-24 . live .

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