Russia's military spending will exceed social spending in 2024
The share of military spending in the draft federal budget for 2024 will increase to 10.8 trillion rubles from 6.4 trillion rubles this year, or to 6% from 3.9% of GDP
Russia’s military expenditures will significantly exceed the social spending, Bloomberg reports. In 2024, this will happen for the first time in decades. At the same time, social policy spending is expected to increase by RUB 1 trillion to RUB 7.5 trillion.
Spending on classified or hidden items is expected to almost double to RUB 11.1 trillion from RUB 6.5 trillion in 2023. This is about 30% of total budget expenditures.
Budget revenues are estimated at RUB 35 trillion (22% higher than in 2023). At the same time, the deficit is expected to be halved: from 1.8% of GDP in 2023 to 0.9%. Oil and gas revenues are expected to increase to RUB 11.5 trillion, or by almost a quarter.
The draft law must be approved by both houses of parliament and then submitted to the president for his signature.
The current law on the federal budget for 2023-2025 provides for a high share of military spending. Thus, the main items cover national defense and internal security – the total expenditures on security spending exceed social expenditures.
According to Forbes, the cost of one day of a major war with Ukraine for Russia is about $300 million. In total, Russia has spent more than $167 billion over the past year and a half.