Find a Security Clearance Job!

Military


Russian Military Budget

2007 Budget

According to first deputy prime minister, former defence minister Sergei Ivanov, restraining the growth of military expenditure was a matter of deliberate state policy. Speaking in May 2007, he stated that during the next three years the share of the MOD in the budget would hardly change. It had been, and would remain, 2.6-2.9 per cent of GDP. Russia, he declared, had no intention of returning to an arms race. In Soviet times the share had been 30 per cent of GDP. 'We don't intend to increase the military budget to such a degree that it becomes a backbreaking burden on the entire economy, on social policy. We shall not step on this rake a second time.'

By 2007 the Russian defense budget had almost quadrupled to $31 billion over the previous six years. In 2005 Russian defense spending rose 22 percent, 27 percent in 2006 and analysts estimate that in 2007 it could increase by an additional 30 percent. In 2007 the Russian Government approved a re-armament program through the year 2015 with a $240 billion budget. During the passage of the draft three-year budget thought the State Duma in 2007, amendments boosted social spending, not outlays on the military and security.

In early 2007, Defense Minister Sergei Ivanov announced an ambitious plan for 2007-2015 to spend USD 240 billion) to replace 45 percent of Russia's arsenal. Among the materiel to be procured or upgraded were:

  • 31 ships for the Navy, including new aircraft carriers;
  • arms for 40 tanks, 97 infantry and 50 airborne battalions;
  • new TOPOL-M (SS-27) ICBMs;
  • the Yarts land-based ballistic missile;
  • the Bulava sea-launched ballistic missile;
  • the X-102 airborne missile;
  • a new version of the Iskander-M ballistic missile, capable of carrying multiple warheads;
  • a fourth Borey-class strategic nuclear submarine (the first was scheduled to go into service after 2008);
  • a new TU-160 Blackjack bomber, and modernization of existing TU-160 and TU-95 Bear bombers;
  • a full fleet of new generation fighters by 2012-2015 (the SU-34 Fullback which was in production and scheduled to replace the SU-24 Fencer frontline bombers).
  • deployment of a second S-400 air defense system near Moscow in 2008.
As of 2007 there were plans for a significant raise in compensation for military personnel. A 10% readjustment of salaries took place on Jan 1, 2007 according to position and rank; on Dec 1, 2007 another adjustment of 15% will take place, with a subsequent increase of 608.33 rubles (cost of food rations per month). As a result the amounts received by military personnel in cash will increase significantly. For example between Dec 2007 and Dec 2008 a regiment commander will receive 20,503 rubles; this includes the added food ration cost (whereas in Jan 2005 he would have received 11,261 rubles); a battalion commander will receive 17,101 rubles (vs. 9,284 rubles in Jan 2005), and a squadron commander will receive 14,792 rubles vs. 7,847 rubles. At the same time will food rations and board will remain unchanged. Further pay increases for military personnel are planned for 2008-2010: an increase of 15% beginning Sept 2008, and another of 6.8% beginning Aug 1, 2009. The amount provided in lieu of food rations is also subject to inflation adjustment.

2008 Budget

The Soviet state budget listed military spending in 1988 as approximately USD 33 bn., but most experts speculated that the figure was 10 times higher. By 1997, Russian military spending had dropped to 1/7th of the listed 1988 figure. In keeping with Putin's demand for upgrade and modernization of the military, the budget increased to almost USD $8 bn in 2001, and by 2007 it had almost quadrupled to USD $31 bn. Defense spending for 2008 is approximately USD 32.6 bn., and projected to increase to USD 36.67 bn. and USD 44.82 bn. in 2009 and 2010 respectively. Although the amounts have increased substantially, defense spending has remained at approximately 2.6-2.8 percent of GDP over the previous six years. Russia officials frequently note that Russian defense spending constitutes only a fraction of US outlays.

In 2005 the average pension sum for persons discharged from the Armed Forces of the Russian Federation was 4,200 rubles; by 2009-2010 through annual increases this amount shall reach 7,500 rubles. In 2008 the federal government will spend 173.3 bln. rubles to pay the pensions of retired military personnel, which is an 18% compared with 2007. In 2009 and 2010 this amount will rise to 211.8 bln. and 245.5 bln., respectively.

In 2008 the federal government planned to set aside 8.3 bln. rubles in mortgage payments toward housing military personnel; this figure was to rise to 11.7 bln. in 2009 and 14.2 bln. in 2010. The amount of down payment amount would rise from 40,600 to 82,800 rubles in 2007; amount paid on the mortgage will be adjusted annually using a deflator index. As of 2007 54,700 individuals were participating in the program; this figure will grow to reach 82,700 service men and women in 2008, and 178,400 by 2010.

The federal budget for 2008 includes additional funds that make it possible to provide all members of the Armed Forces of the Russian Federation with permanent housing by 2010, and service housing by 2012. Service members of other federal agencies that require military service will receive permanent housing by 2011 and service housing by 2013. In 2008-2010 a total of 156.2 bln. rubles will be appropriated to this end, including 36.5 bln. in 2008, which is double the 2007 amount.

Russia's Defense Ministry would spend around one trillion rubles ($40 bln) of federal budget funds in 2008. "The Defense Ministry will spend a little less than one trillion rubles in 2008, which is about 20% more than last year," Deputy Defense Minister Lyubov Kudelina said on 26 February 2008. She also said that in 2008-10, military spending would account for 15.5-16% of aggregate federal budget expenditure. Kudelina did not say how much would be spent this year on the procurement of new military hardware, but last year's figure was over 300 billion rubles ($12 billion), 20% higher than in 2006. Russia has downsized its Armed Forces to about 1.1 million personnel, but military spending has increased dramatically under President Putin. Defense spending was set to total 1.18 trillion rubles ($45 billion) by 2010.

2009 Budget

Russia will boost defense spending 26 percent to a post-Soviet record in 2009 as it adds weapons and raises salaries, Finance Minister Alexei Kudrin said 11 September 2008. Defense spending, including arms purchases and pay raises, will reach 1.28 trillion rubles ($50 billion) in 2009, Kudrin told lawmakers in Moscow. Kudrin said the new weapons component of the budget will advance 30 percent, though he declined to give exact figures because that information is classified by the military. The increase was approved before the conflict with Georgia, said Kudrin, who is also a deputy prime minister. As of March 2007 total 'national defence' spending for 2009 had been slated to reach only 1.053 trillion rubles.

Russia's budget spending on state defense orders will amount to 1.2 trillion rubles ($46.8 billion) in 2009, first deputy prime minister Sergei Ivanov said on 12 September 2008. The spending figure was outlined in the Russian budget for 2009-2011 which was due to be considered by Russia's lower house of parliament, the State Duma, on September 19. The three-year budget envisaged additional spending of 170 billion rubles ($6.63 billion) in comparison to previous annual programs.

2010 Budget

2011 Budget

2012 Budget

2013 Budget

The National Defence chapter of the Federal Budget, which is the source of funding for the Armed Forces, is one of the largest spending items (after the social programs) in the Russian budget in 2012. Over 1.8 trillion roubles were earmarked for this purpose, which is 315.9 billion roubles or 20.5% up from the 2011 spending. The budget assigned for the defence in 2013 and 2014 (versus the previous year) was 476.1 billion roubles (25.7%) and 408.0 billion roubles (17.5%), respectively.

2014 Budget

Government spending on orders for military equipment will increase by 25 percent in 2014, Deputy Defense Minister Yuri Borisov said 20 November 2013. Armed services procurement was expected to reach 1.7 trillion rubles ($52 billion) in 2014, up from the 1.35 trillion rubles allocated for state defense contracts this year. That was in line with the trend of increased defense expenditure across the board, but came against the backdrop of severe planned budget cuts to health care and education. Russia was implementing an ambitious 20 trillion ruble ($640 billion) rearmament program planned to run up until 2020. The program would see the share of modern weaponry in Russias armed forces reach 30 percent by 2015 and 70 percent by 2020. Borisov said a new state arms procurement program for the decade up to 2025, which was being drafted by the government, would prioritize quality over quantity in new weaponry and focus on the standardization and unification of military equipment.

Russia planned to boost its national defense and national security spending in the current decade. Around 20 trillion roubles ($641 billion) have been earmarked for the State Armaments Program (Gosudarstvennaya Programma Vooruzheniy, GPV2020) to be spent by 2020. Additionally, three trillion roubles will be spent on modernization of Russias defense industry. Russia's 2011-2020 arms procurement program stipulates the upgrade of up to 11 percent of the forces' military equipment annually and will boost the share of modern weaponry in the armed forces' inventory to 70 percent by 2020.

An average annual expenditure by Russia of about $60 billion compares with an average annual spending by the United States of about $170 billion to develop and buy weapons systems. On 24 June 2013 the Russian Defense Ministry has signed 737 billion rubles (about $22.5 billion) worth of contracts as part of its arms procurement program for 2013. The signed deals account for 82.4 percent of this years arms procurement quota, suggesting the total 2013 procurement program amounts to about $27 billion, one sixth that of the United States.




NEWSLETTER
Join the GlobalSecurity.org mailing list


 
Page last modified: 30-06-2016 19:29:53 ZULU