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    Military budget of the Russian Federation

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    sepheronx
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    Re: Military budget of the Russian Federation

    Post  sepheronx on Thu Oct 08, 2015 12:31 am

    Project Canada wrote:
    George1 wrote:Russia's military spending in 2016 will be reduced by 225 billion rubles

    that sounds big, so i guess more delays in arms procurement
    In relation to GDP expenditure section "National Defense" in 2016 up 3.7 percent. Share of total expenditures of the federal budget in comparison with 2015 (20.1%) decrease and reach 18.3 per cent. The budget appropriations in 2016 under the section "National defense" is planned in the amount of 2886 197 900 000. Rubles.

    The budget appropriations in 2016 compared to the level of 2015 decreased by 225 414.7 million. Rubles, including by reducing the budget appropriations for: - current maintenance of the Armed Forces of the Russian Federation in the amount of 56 044.6 million. Rubles; - Implementation budget investments in special military and the Defense Ministry of Russia in the amount of 104 549.3 million. rubles. The volume of budget appropriations compared to the amount approved by the Law № 384-FZ, decreasing by 227 010.8 million. rubles. Changes in the volume of budget appropriations, due to common approaches to the formation of the draft federal budget, compared to the amount approved by the Law № 384-FZ, reduced expenses 155 354 800 000. rubles. Along with the general approach to the formation of the draft federal budget, to change the cost of that section had an impact: increase budget allocations for: - current maintenance of the Armed Forces of the Russian Federation in the amount of 16 297.8 million. rubles - compensation payments to servicemen and civilian personnel of the Russian Defense Ministry in the amount of 1 739.8 million. rubles, previously provided for in the framework of the State Enterprise "Social support citizens ", - the construction of a double-track electrified railway section Zhuravka-Millerovo in the amount of 170.9 million. rubles, a decrease in budget allocations for: - the implementation of budgetary investments into special and military Ministry of Defense of Russia in the amount of 5 618.4 million. rubles. - the transfer of powers and abolished Rosoboronzakaz Rosoboronpostavki in the amount of 391.3 million. rubles other federal bodies of executive power. The budget appropriations reserved in the formation of the draft federal budget for 2016, under section "National Defense" was 5 051.2 million. rubles and will be used to: - meet the obligations assumed under the Treaty in the implementation of military-technical cooperation, as well as for activities relating to the completion of military products, delivered from the presence in the military-technical cooperation, reimbursement Russian Ministry of Defense related to the performance of work under the contracts concluded with JSC "Russian Railways" in the amount of 4 889.4 million. rubles - to ensure the activities of federal executive bodies in connection with the transfer of powers uprazdennoy Rosoboronpostavki in the amount of 161.8 million. rubles.

    No.  Nothing like that.  It is $3.4B in dollar terms reduction.  SAP2020 was agreed upon already by ministry of finance and the rest of being $300B.  Issue is that no SAP2025 was agreed upon and was frozen so chances are, there wont be any decisions on future SAP till 2020 when this one is over while 2025 was an increase + extension of SAP2020.

    Seems that cuts are most in certain maintenance and reduction in payments (this makes some sense since Russian servicemen are some of the best paid in the country in terms of state run systems).

    http://tass.ru/en/economy/817608

    They have been planning a reduction for sometime. But SAP 2020 is still ongoing. Don't worry about procurement. What I worry about is about the little things like the special forces/services that are getting a huge portion of the cut.

    Austin
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    Re: Military budget of the Russian Federation

    Post  Austin on Thu Oct 08, 2015 6:06 am

    So budget is 2.88 Trillion Rouble for 2016, To reach Planned expenditure of 23 trillion Rouble by 2020

    they need to spend 2.30 trillion rouble each year for 2017 ,18,19,20

    sepheronx
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    Re: Military budget of the Russian Federation

    Post  sepheronx on Thu Oct 08, 2015 6:14 am

    Austin wrote:So budget is 2.88 Trillion Rouble for 2016, To reach Planned expenditure of 23 trillion Rouble by 2020

    they need to spend 2.30 trillion rouble each year for 2017 ,18,19,20
    So they could....... drop the budget even more by 2017 to exactly 2.3T Rubles and keep it at that rate for 18 19 and 20.

    Dont say it too loud though, maybe Russian finance MoD is reading the forums? lol.

    I imagine next SAP (2025/2027) may end up being smaller or the same as this one. Roughly $300B for procurements to meet the remaining demand of modernization and investments. After modernization is complete, there will probably be a new form of modernization but much smaller where SAP's afterwards may be smaller (maybe $200B or less). As SAP's are different than the overall defense budget but added in to total figures.

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    Re: Military budget of the Russian Federation

    Post  magnumcromagnon on Thu Oct 08, 2015 6:28 am

    sepheronx wrote:
    Austin wrote:So budget is 2.88 Trillion Rouble for 2016, To reach Planned expenditure of 23 trillion Rouble by 2020

    they need to spend 2.30 trillion rouble each year for 2017 ,18,19,20
     So they could....... drop the budget even more by 2017 to exactly 2.3T Rubles and keep it at that rate for 18 19 and 20.

    Dont say it too loud though, maybe Russian finance MoD is reading the forums? lol.

    I imagine next SAP (2025/2027) may end up being smaller or the same as this one.  Roughly $300B for procurements to meet the remaining demand of modernization and investments.  After modernization is complete, there will probably be a new form of modernization but much smaller where SAP's afterwards may be smaller (maybe $200B or less).  As SAP's are different than the overall defense budget but added in to total figures.

    I think you guys are missing a key point. Rouble devaluation and it's relation/effect on total volume of supplies:

    According to the The Central Research Institute "Electronics", the devaluation of the Rouble is set to increase the total volume of supplies of modern weapons for export as well as domestic procurement of arms by a minimum of 20%, all the way to a maximum of 60% depending on the level of the exchange rate, the duration of the planning period and the minimum level of supply of products to the domestic market and for export.

    CRI "Electronics" became the leading center for interdisciplinary research DIC economy
    Institute for the year showed the best results among similar organizations



    Employees of Central Research Institute "Electronics" for the year showed the best results among all research institutions of the military-industrial complex.

    According to the results of testing conducted by research institute figures totaled approximately 6 reports at the same scientists working in the Central Research Institute "Electronics". According to this indicator Institute significantly superior to other research organizations DIC, which over the same period presented at international and national conferences on the average on 1-2 subjects to report similar to one scholar.

    Employees of Central Research Institute "Electronics", for example, tested the hypothesis that the shortage of investment and reduce the cost of the national currency is useful to increase export sales of products, which should contribute to a speedy modernization of the defense industry.

    A study conducted by experts of the Institute, has shown that the maximum increase of exports in a few years may be appropriate.    

    According to experts, the implementation of such a strategy can increase the total volume of supplies of modern weapons for the needs of national defense by 20-60% depending on the level of the exchange rate, the duration of the planning period and the minimum level of supply of products to the domestic market and for export.

    As the number of published scientific papers and monographs published by academic economists Institute also became the best in Russia.

    According to preliminary results of the "Best Director of a research organization Defense Industry of Russia" can become CEO of CRI "Electronics" Alena Fomina.

    On the title "best scientist-economist Russia's defense industry," claims Advisor to Director General Research Institute "Electronics", Ph.D. AM Batkovsky.

    CRI "Electronics" became the leading center for interdisciplinary research DIC economy



    sepheronx
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    Re: Military budget of the Russian Federation

    Post  sepheronx on Thu Oct 08, 2015 6:39 am

    That isn't surprising. Since the Ruble devaluation mixed in with sanctions has caused a massive upswing in import substitution, especially in electronics, will cause an increase in sales. It really is simple, due to the fact that once something was purchased abroad will now be purchased at home for a cheaper price, will drastically increase sales of domestic companies, as they will be the ones obtaining the orders as the procurement is still being pushed forward, thus the demand is still available. So when they only provided some electronic components for say the Su-35S in the form of a display, will now have to purchase the companies components for more than just that 1 display, but for lets say radio communication system, onboard diagnostics system, HUD, radar, etc. As well, the devaluation of the Ruble has allowed it to become significantly cheaper (the products to sell abroad) thus growing demand for Russian products.

    Essentially, someone said sometime this year, through this boards on an article posted, that sanctions mixed in with ruble devaluation has done something for Russia that only could have been possible if Russia done via heavy tariffs which would have been against the WTO and cause problems for Russia in legal sense.

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    Re: Military budget of the Russian Federation

    Post  Austin on Sat Oct 24, 2015 9:29 am


    Spending on national defense in the draft budget for 2016 is planned in the amount of 3 trillion 145 billion rubles

    10/24/2015 0:16:13

    Moscow. October 24. Interfax - The draft budget for 2016 assumes defense spending of $ 3 trillion 145 billion rubles, which is 4% in relation to GDP.

    According to the draft law "On the Federal Budget for 2016", submitted by the Government of the Russian Federation on Friday to the State Duma, the share in total expenditures of the federal budget in comparison with 2015 (20.2%) and a decrease of 19.6 percent.

    The budget appropriations in 2016 under the heading "National defense" is planned in the amount of 3145 090 700 000. rubles.

    The draft budget for 2016, the cost of the "National Security and Law Enforcement" amount to 2.6% in relation to GDP. Share of total expenditures of the federal budget in comparison with 2015 (12.8%) decrease and reach 12.4 per cent.

    The budget appropriations in 2016 under the heading "National Security and Law Enforcement" planned at 2024 099 400 000. rub.

    sepheronx
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    Re: Military budget of the Russian Federation

    Post  sepheronx on Sat Oct 24, 2015 6:23 pm

    Will be interesting after SAP2020 what they decide to do. Cause that will effect the def budget greatly. If they decide that the next SAP is half of the current amount for 5 years (procurement set at lets say 10T Rubles rather than the current 24T), then that would drop the defense budget greatly as they wont have to pay for as much. Save revenue would then go to other projects or straight to the reserve funds.

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    Re: Military budget of the Russian Federation

    Post  Backinblack on Mon Oct 26, 2015 9:30 am

    Russian Navy’s Missile Launch Upon ISIS May Cost RUB 10 Bln: http://mil.today/2015/Syria9/

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    Re: Military budget of the Russian Federation

    Post  George1 on Fri Oct 30, 2015 11:30 pm


    Russian to spend $34.8 bln on Armed Forces in 2016 — draft budget

    Russia will spend over $750 mln on nuclear weapons in 2016

    MOSCOW, October 30. /TASS/. A total of 2.233 trillion rubles ($34.8 billion) is planned to be allocated from the budget for the Russian Armed Forces in 2016, according to a report from the Defense Committee of the State Duma published on Friday.

    The announced sum is lower by 176.674 million rubles ($2.8 million) against the one allocated for the same purposes this year.

    The report also said that a total of 3.145 trillion rubles ($49 billion) was planned to be allocated on the "national defense" next year.
    Russia to spend over $750 mln on nuclear weapons in 2016

    The federal budget spending on nuclear weapons will grow by almost 4 billion rubles ($62 million) in 2016 as part of national defense expenditures.

    According to the document, the funding set aside in accordance with the budget item is more than 44.5 billion rubles ($693 million) in 2015, while over 48.3 billion rubles ($754 million) has been earmarked for 2016.


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    Kimppis
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    Re: Military budget of the Russian Federation

    Post  Kimppis on Sat Oct 31, 2015 8:33 pm

    George1 wrote:
    Russian to spend $34.8 bln on Armed Forces in 2016 — draft budget

    Russia will spend over $750 mln on nuclear weapons in 2016

    MOSCOW, October 30. /TASS/. A total of 2.233 trillion rubles ($34.8 billion) is planned to be allocated from the budget for the Russian Armed Forces in 2016, according to a report from the Defense Committee of the State Duma published on Friday.

    The announced sum is lower by 176.674 million rubles ($2.8 million) against the one allocated for the same purposes this year.

    The report also said that a total of 3.145 trillion rubles ($49 billion) was planned to be allocated on the "national defense" next year.
    Russia to spend over $750 mln on nuclear weapons in 2016

    The federal budget spending on nuclear weapons will grow by almost 4 billion rubles ($62 million) in 2016 as part of national defense expenditures.

    According to the document, the funding set aside in accordance with the budget item is more than 44.5 billion rubles ($693 million) in 2015, while over 48.3 billion rubles ($754 million) has been earmarked for 2016.

    Wait... There are two different categories? "Armed Forces" and "National Defense"?

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    Re: Military budget of the Russian Federation

    Post  sepheronx on Sun Nov 01, 2015 4:15 am

    Kimppis wrote:
    George1 wrote:
    Russian to spend $34.8 bln on Armed Forces in 2016 — draft budget

    Russia will spend over $750 mln on nuclear weapons in 2016

    MOSCOW, October 30. /TASS/. A total of 2.233 trillion rubles ($34.8 billion) is planned to be allocated from the budget for the Russian Armed Forces in 2016, according to a report from the Defense Committee of the State Duma published on Friday.

    The announced sum is lower by 176.674 million rubles ($2.8 million) against the one allocated for the same purposes this year.

    The report also said that a total of 3.145 trillion rubles ($49 billion) was planned to be allocated on the "national defense" next year.
    Russia to spend over $750 mln on nuclear weapons in 2016

    The federal budget spending on nuclear weapons will grow by almost 4 billion rubles ($62 million) in 2016 as part of national defense expenditures.

    According to the document, the funding set aside in accordance with the budget item is more than 44.5 billion rubles ($693 million) in 2015, while over 48.3 billion rubles ($754 million) has been earmarked for 2016.

    Wait... There are two different categories? "Armed Forces" and "National Defense"?

    I noticed that too.  So somehow national defense falls under a different category than the military budget.  And national defense budget is massive compared to army.  This may make some sense.

    Funny thing to also notice is how the exchange rate really plays into this.  I don't know if George added in the USD amount but it really doesn't matter/apply here except for imported goods (which drastically dropped for military purposes).  National defense on the other hand I never noticed as a separate entity.  But they are spending a ton on it.  I wonder if groups like MVD, and FSB falls under this?

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    Re: Military budget of the Russian Federation

    Post  Kimppis on Sun Nov 01, 2015 4:41 pm

    sepheronx wrote:
    Kimppis wrote:
    George1 wrote:
    Russian to spend $34.8 bln on Armed Forces in 2016 — draft budget

    Russia will spend over $750 mln on nuclear weapons in 2016

    MOSCOW, October 30. /TASS/. A total of 2.233 trillion rubles ($34.8 billion) is planned to be allocated from the budget for the Russian Armed Forces in 2016, according to a report from the Defense Committee of the State Duma published on Friday.

    The announced sum is lower by 176.674 million rubles ($2.8 million) against the one allocated for the same purposes this year.

    The report also said that a total of 3.145 trillion rubles ($49 billion) was planned to be allocated on the "national defense" next year.
    Russia to spend over $750 mln on nuclear weapons in 2016

    The federal budget spending on nuclear weapons will grow by almost 4 billion rubles ($62 million) in 2016 as part of national defense expenditures.

    According to the document, the funding set aside in accordance with the budget item is more than 44.5 billion rubles ($693 million) in 2015, while over 48.3 billion rubles ($754 million) has been earmarked for 2016.

    Wait... There are two different categories? "Armed Forces" and "National Defense"?

    I noticed that too.  So somehow national defense falls under a different category than the military budget.  And national defense budget is massive compared to army.  This may make some sense.

    Funny thing to also notice is how the exchange rate really plays into this.  I don't know if George added in the USD amount but it really doesn't matter/apply here except for imported goods (which drastically dropped for military purposes).  National defense on the other hand I never noticed as a separate entity.  But they are spending a ton on it.  I wonder if groups like MVD, and FSB falls under this?

    "National defence" seems to be the actual defence budget, because that sum is $49 billion, which makes perfect sense considering the ruble's devaluation. On the other hand, that $34.8 billion for the armed forces is too low and too much of a drop for that to be the actual defence spending. The article also mentions that it has only dropped by $2.8 million.

    So WTF? Why haven't I seen this before? So is Russias actual official military spending 49 + 35 billion = 84 billion, which is actually more than $160 billion before the devaluation. It doesn't make much sense... that would be almost 40% budget and probably over 6% of the GDP. But still, that $35 billion is too low. It would only be something like 15% of the budget.

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    Re: Military budget of the Russian Federation

    Post  sepheronx on Sun Nov 01, 2015 4:48 pm

    Not really as before the devaluation, that would mean the budget for mil would be over $60B which could be right. I wonder if the mil budget falls under national defense and thus out of the $49B, $34.8 is used for mil and rest for other. If we know how much Russia pays for things like Su-30's .

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    Re: Military budget of the Russian Federation

    Post  Kimppis on Sun Nov 01, 2015 5:05 pm

    sepheronx wrote:Not really as before the devaluation, that would mean the budget for mil would be over $60B which could be right. I wonder if the mil budget falls under national defense and thus out of the $49B, $34.8 is used for mil and rest for other.  If we know how much Russia pays for things like Su-30's .

    But wouldn't $35/60 billion be too low too much of a drop? Last year military budget was around $90 billion after all. That $35/60 billion wouldn't be even close to 20-25% of the budget or 4+% of the GDP. And I just read like a week ago that the Russian military budget is going to be around 50$ billion in 2016. So maybe some of that $34 billion is for the military and the rest are for internal security, or maybe the other way around (like some of that $49 billion is also used for weapons procurement).

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    Re: Military budget of the Russian Federation

    Post  sepheronx on Sun Nov 01, 2015 6:28 pm

    Last years budgetwas around $50B and that was before the excha.ge rate difference.

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    Re: Military budget of the Russian Federation

    Post  Kimppis on Sun Nov 01, 2015 9:25 pm

    sepheronx wrote:Last years budgetwas around $50B and that was before the excha.ge rate difference.

    What? So they cut it by something like 30%? It was around 80 billion in 2014 and I thought it actually increased last year.

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    Re: Military budget of the Russian Federation

    Post  sepheronx on Sun Nov 01, 2015 9:33 pm

    Austin posted official spending numbers from Russia. No budget in 2014 was in the $40B range. In 2015 it was in the $50B range and in 2016 the $60B range (before devaluation of currency). Those numbers you are stating are speculations from sipri I think. So we are basing what Russian gov are saying.  The rest is pure speculations.

    http://www.russiadefence.net/t24p120-russian-military-budget#109498

    Austins earlier post about 3.145T rubles for national defense was correct seeing as how the article George posted repeats it. Only info we have additional is that it seems that mil budget is a part of that and nuclear missiles may be separated from the mil budget.

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    Re: Military budget of the Russian Federation

    Post  Kimppis on Sun Nov 01, 2015 10:18 pm

    sepheronx wrote:Austin posted official spending numbers from Russia. No budget in 2014 was in the $40B range. In 2015 it was in the $50B range and in 2016 the $60B range (before devaluation of currency). Those numbers you are stating are speculations from sipri I think. So we are basing what Russian gov are saying.  The rest is pure speculations.

    http://www.russiadefence.net/t24p120-russian-military-budget#109498

    Austins earlier post about 3.145T rubles for national defense was correct seeing as how the article George posted repeats it. Only info we have additional is that it seems that mil budget is a part of that and nuclear missiles may be separated from the mil budget.

    Russian nominal GDP was at 2 trillion USD before the devaluation

    The Russian defence budget has been around 4% of the GDP and 20% of the budget during the past few years, atleast, right?

    And 4% is/was around 80 billion USD. (1% would 20 billion, ofc.)

    Russian military budget was already ranked as the 3rd highest in the world, in official, nominal terms already back in 2012-13. That's how I remember it, atleast. And UK's France's budget has been around 60 billion this whole time. So Russia's budget must have been higher than that.

    So Russia's military budget is around 3 trillion rubles next year? That is 46 billion USD (not the 35 billion for the "armed forces") for "national defence", which would be around 90+ billion before the devaluation. So that 49 billion, again, makes perfect sense.

    SIPRI's own numbers were and are ofc higher, but they were 80 billion+ like years ago. In 2012 or 2013. I think...

    Wikipedia: https://en.wikipedia.org/wiki/Military_budget_of_the_Russian_Federation

    "The Russian government's published 2014 military budget is about 2.49 trillion rubles (approximately US$69.3 billion), the third largest in the world behind the US and China. The official budget was set to rise to 3.03 trillion rubles (approximately US$83.7 billion) in 2015, and 3.36 trillion rubles (approximately US$93.9 billion) in 2016.[1] As of 2014, Russia's military budget was higher than any other European nation, and approximately 1/7th (14%) of the US military budget. However, a collapse in the value of the Rouble has greatly reduced the dollar-value of the Russian budget to around 50 billion USD as of February 2015, despite a 33% increase in the Rouble-value of the budget.[2]

    And the same articles shows that SIPRI's figure was already at 90 billion back in 2012.

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    Re: Military budget of the Russian Federation

    Post  sepheronx on Sun Nov 01, 2015 10:20 pm

    Read my post, follow link, read Austins post and his link. Those are accurate numbers, not wikis.

    The wording on Georges link is not very good. Tass has really bad sentence structures that makes it very confusing to read and understand.

    Essentially, what I am getting out of this is that the National Defense Budget is over 3T Rubles ($49B USD) and that out of that $49B, $34B of it is going to the military (paying soldiers, maintenance, training, benefits, etc etc etc) and the rest through things like FSB, Nuclear weapons, other special operative groups, possibly weapons procurements, etc. The wording makes it sound like something else but essentialy defense budget is $49B (or $90/some odd B in old exchange rate). But defense means multitude of things and well, I imagine the national police units like Omon fall under the budget.


    Last edited by sepheronx on Sun Nov 01, 2015 10:27 pm; edited 1 time in total

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    Re: Military budget of the Russian Federation

    Post  Kimppis on Sun Nov 01, 2015 10:26 pm

    sepheronx wrote:Read my post, follow link, read Austins post and his link. Those are accurate numbers, not wikis.

    Russian military budget is around 3 trillion roubles? That is 45+ billion USD right now. Which would be around 90 billion USD before the devaluation, not 50 billion, right?

    Russian military budget was 2.5 trillion roubles in 2014. Which would be 70+ billion USD before the devaluation, not 50.

    That's the only thing we are disagreeing on. I think? I don't know anymore, lol.

    Wiki is saying the same thing btw, regarding the rouble value of the budget. It's sourced.

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    Re: Military budget of the Russian Federation

    Post  sepheronx on Sun Nov 01, 2015 10:29 pm

    Yes, the national defense budget is $49B this year. Military is $34B (part of the budget).  I think groups like MVD, Omon, FSB have a budget of about $1B (lol).

    Tass is lousy in their sentenceing and english translations at times. Making their articles a riddle more than anything.

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    Re: Military budget of the Russian Federation

    Post  Kimppis on Sun Nov 01, 2015 10:31 pm

    sepheronx wrote:Essentially, what I am getting out of this is that the National Defense Budget is over 3T Rubles ($49B USD) and that out of that $49B, $34B of it is going to the military (paying soldiers, maintenance, training, benefits, etc etc etc) and the rest through things like FSB, Nuclear weapons, other special operative groups, possibly weapons procurements, etc.  The wording makes it sound like something else but essentialy defense budget is $49B (or $90/some odd B in old exchange rate).  But defense means multitude of things and well, I imagine the national police units like Omon fall under the budget.

    sepheronx wrote:Yes, the national defense budget is $49B this year. Military is $34B (part of the budget).  I think groups like MVD, Omon, FSB have a budget of about $1B (lol).

    Tass is lousy in their sentenceing and english translations at times. Making their articles a riddle more than anything.

    I see, that explains it. Smile

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    Re: Military budget of the Russian Federation

    Post  franco on Sun Nov 01, 2015 11:35 pm

    Kimppis wrote:
    sepheronx wrote:Read my post, follow link, read Austins post and his link. Those are accurate numbers, not wikis.

    Russian military budget is around 3 trillion roubles? That is 45+ billion USD right now. Which would be around 90 billion USD before the devaluation, not 50 billion, right?

    Russian military budget was 2.5 trillion roubles in 2014. Which would be 70+ billion USD before the devaluation, not 50.

    That's the only thing we are disagreeing on. I think? I don't know anymore, lol.

    Wiki is saying the same thing btw, regarding the rouble value of the budget. It's sourced.

    Russia doesn't do it's budget in US$. End of story.

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    Re: Military budget of the Russian Federation

    Post  Kimppis on Mon Nov 02, 2015 12:14 am

    franco wrote:
    Kimppis wrote:
    sepheronx wrote:Read my post, follow link, read Austins post and his link. Those are accurate numbers, not wikis.

    Russian military budget is around 3 trillion roubles? That is 45+ billion USD right now. Which would be around 90 billion USD before the devaluation, not 50 billion, right?

    Russian military budget was 2.5 trillion roubles in 2014. Which would be 70+ billion USD before the devaluation, not 50.

    That's the only thing we are disagreeing on. I think? I don't know anymore, lol.

    Wiki is saying the same thing btw, regarding the rouble value of the budget. It's sourced.

    Russia doesn't do it's budget in US$. End of story.

    That's true, especially after the devaluation.

    And Saudi Arabia's budget is $80 billion... Hahahahahaha...

    kvs
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    Re: Military budget of the Russian Federation

    Post  kvs on Mon Nov 02, 2015 1:08 am

    Even in rubles, the Russian military budget is not reflecting the scale of this complex in Russia. The price structure is almost absurdly
    small compared to any of the western countries. For example, the Project 636.3 diesel-electric submarines had a price of about
    $330 million dollars before devaluation and around $190 million today. This is less than 10% of the price of similar boats from the west.
    But there are also large scale non-market and hence non-priced processes in the Russian military-industrial complex (MIC). It's a sort of
    cultural thing, companies engage in activity and exchange goods and services without shuffling vast amounts of money around.
    You can call it a Soviet hold-over, I can call it efficiency (as in better use of resources with less bureaucracy).

    The Russian GDP is supposed to be about 71 trillion rubles in 2015. A 3 trillion budget amounts to 4% of the GDP, this is
    comparable to that of the USA. But the Russian economy is supposedly six times smaller in terms of PPP GDP. Does anyone
    believe that Russian military capacity is 1/6 that of the USA? That is simply laughable.


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