Russia plans a massive increase in defense spending next year as President Vladimir Putin’s invasion of Ukraine continues to remake its economy and alter funding priorities.
Defense spending will comprise 6% of the country’s gross domestic product in 2024, up from 3.9% in 2023 and 2.7% in 2021, according to draft budget plans seen by Bloomberg News. Secret expenditure on classified or unspecified items is forecast to nearly double as the Kremlin continues to try to avoid scrutiny of the war’s impact.
Moscow doubled its target for defense spending in 2023 to more than $100 billion, as the costs of the war in Ukraine spiral and place growing strain on Moscow's finances.
Rising war costs are supporting Russia's modest economic recovery this year with higher industrial production, but have already pushed budget finances to a deficit of around $24 billion - a figure compounded by falling export revenues.
The government was due to discuss draft budget proposals on Friday.
Source: Bloomberg
