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ARTICLE
Russia increases military spending by freezing social spending,
British intelligence
News Censor.NET
23.10.23 10:00
https://censor.net/en/n3451105
Russia freezes education and health spending to boost defense spending.
This is stated in the analytical report of the Ministry of Defense of Great Britain, Censor.NET informs.
“Russian spending from the budget is increasingly focused on spending on the war against Ukraine. In particular, the proposed state budget for 2024 provides for an increase in planned defense spending by approximately 68% compared to the 2023 budget. This means that defense spending in 2024 will amount to about 6% of GDP,” the report said.
Experts note that, in contrast, spending on education and health care in Russia will be frozen at the level of 2023, which means a real reduction due to inflation. At the same time, the Russian Federation will have to allocate more funds to finance payments and health care costs for the growing number of wounded soldiers and families of those killed in the conflict.
“More than half of the soldiers who received injuries severe enough to require long-term treatment lost their limbs, and one in five of them required amputation of their upper limbs,” analysts point out, referring to the words of Russian Deputy Minister of Labor Alexei Vovchenko, adding that these wounded soldiers will require lifelong medical care.
At the same time, experts point out that a consistent increase in military spending will most likely lead to inflationary pressure in Russia. Also, the continued increase in military spending will force the Russian government to make difficult decisions about how to finance the war, which is likely to increase the financial pressure on Russian businesses.
“However, any significant reduction in military spending in the future will probably lead to the elimination of the main driver of Russian economic activity under sanctions,” experts believe.