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    Military budget of the Russian Federation

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    GarryB

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    Re: Military budget of the Russian Federation

    Post  GarryB on Wed Oct 26, 2016 10:01 am

    Got to this bit:

    Western economic sanctions, meanwhile, continue to weigh down on the nation’s business and investment climate – keeping alive the West’s clear signal of disapproval towards Russia’s aggressive actions in Ukraine.

    And thought exactly what you wrote Big Gazza;

    Fuck them and their bullshit...

    Very simply they don't care about Russia or the Ukraine or anyone or anything.

    To be honest the answer to the question is actually yes.

    Does Russia have the financial means for its military ambitions?

    Because Russian Military ambitions are to remain safe from aggressive external enemies like NATO. They have no ideology to spread by force and no Empire to maintain like NATO and the west does.

    Perhaps they should go and fix the places they have broken over the last decade or so... Kosovo, Iraq, Afghanistan, Libya, Syria, Yemen, and Ukraine and spend some money repairing the damage they have created just this century... but of course they only have money for war.


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    kvs

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    Re: Military budget of the Russian Federation

    Post  kvs on Fri Oct 28, 2016 4:44 pm


    The usual retardation of using the dollar exchange rate to evaluate the economy of a country. Using this pre-school level thinking Russia's
    GDP must have shrunk by 60% between 2014 and 2015. Well, it only shrank by 3.5% and is going to grow this year and next. So either
    use rubles to evaluate the Russian military budget or shut the f*ck up.

    NATO bleaters are so full of shit it is coming out of their ears. Russian military product prices are not inflated corrupt prices like in NATO.
    So even if using rubles to evaluate the Russian military budget, one has to apply a mulitplier of between 3 and 6 to account for what those
    rubles can actually buy compared to what dollars can buy in NATO.

    Developments since 2014 have not been kind to Russia’s economy. Heavily dependent on oil and gas export revenues, the nation’s currency, gross domestic product (GDP), and real living standards, all suffered substantially from the sharp fall in oil prices that occurred in late 2014. Russian GDP shrank by 3.7% in real terms in 2015, and is generally expected to fall by a further 0.8% this year, according to the October 2016 forecast of the International Monetary Fund (IMF).

    In this paragraph they basically insinuate that that there has been some sort of massive drop associated with oil and gas revenues even though
    the numbers they cite do not support this claim whatsoever. In 2013 Russia's GDP included 13.7% for the whole gas and oil industry including
    value added production. If one applies a 50% reduction to this sector due to prices there should have been a 6.85% GDP drop from this alone
    but there was none and other factors drove the GDP drop. The reason is that the ruble revenue for the oil and gas stayed the same thanks to the
    ruble forex change. Russia's GDP does not operate on dollars. It operates on rubles.
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    kvs

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    Re: Military budget of the Russian Federation

    Post  kvs on Fri Oct 28, 2016 4:46 pm

    Big_Gazza wrote:

    Why would anyone trust anything those HATOstani bastards say about Russia?  Fuck them and their bullshit...

    That is true but refuting their drivel is sometimes worthwhile. But the way Austin posts this crap makes him seem lie a troll.

    Austin

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    Re: Military budget of the Russian Federation

    Post  Austin on Fri Oct 28, 2016 5:10 pm

    Russian Armed Forces upgrade prioritized in 2017-2019 budget


    More:
    http://tass.com/economy/909427

    MOSCOW, October 28. /TASS/. Modernization of the Russian Armed Forces is a priority task and the funds on this upgrade are set aside in the 2017-2019 budget, Finance Minister Anton Siluanov said on Friday.

    "Next year, despite all the complexities, is the year that will see further modernization of our Armed Forces. This is a geopolitical task, one of our priority goals. The president has set the task to ensure 70% of modern armament in our army by 2020. The funds required for this have been set aside," the finance minister said.

    The Russian government submitted a draft budget for 2017 and for the planned period of 2018 and 2019 to the State Duma on Friday.
    According to the document, the federal budget deficit will total 2.75 trillion rubles ($43.8 billion) in 2017 and will gradually decrease to 2.011 trillion rubles ($31.9 billion) in 2018 and 1.142 trillion rubles ($18 billion) in 2019.

    The Russian government submitted a draft budget for 2017 and for the planned period of 2018 and 2019 to the State Duma on Friday.

    According to the document, the federal budget deficit will total 2.75 trillion rubles ($43.8 billion) in 2017 and will gradually decrease to 2.011 trillion rubles ($31.9 billion) in 2018 and 1.142 trillion rubles ($18 billion) in 2019.


    Federal budget revenues will total 13.487 trillion rubles ($214 billion) in 2017, 14.028 trillion rubles ($223 billion) in 2018 and 14.844 billion rubles ($236 billion) in 2019.

    Federal budget expenses will amount to 16.240 trillion rubles ($258 billion) in 2017, 16.039 trillion rubles ($255 billion) in 2018 and 15.986 trillion rubles ($254 billion) in 2019.

    According to Siluanov, the finance ministry will draft a proposal on further consolidation of the budget if revenues decline.
    "If [budgeting conditions - TASS] are worse, we will prepare a proposal for further consolidation. This applies both to revenues and expenditures. Measures are taken in Russia and in other countries that face such situation," Siluanov said.


    More:
    http://tass.com/economy/909427

    Austin

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    Re: Military budget of the Russian Federation

    Post  Austin on Sat Oct 29, 2016 5:59 pm

    Spending on national defense in 2017 could fall to 1 trillion rubles.

    The army and the military-industrial complex 28 October, 23:26 the UTC + 3

    The materials for the project in the 2017-2019 budget years, said that this article, costs will fall from 23.7% in the total volume to 17.5% in 2017 and to 17% in 2018

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    MOSCOW, October 28th. / TASS /. The costs of the Russian budget under the heading "National Defense" in 2017 will decrease by 1 trillion rubles (27.1%) compared with the current year and will amount to 2 trillion 836 billion rubles. In the years 2018-2019 the costs of this article will remain approximately at the same level as in 2017. These data are presented in the materials to the draft budget for the years 2017-2019, published on the website of the State Duma.

    At this year's "National Defense" allocated 3 trillion 888 billion 982.5 million rubles (23.7% of the federal budget).
    "Budget allocations under the heading" National Defense "in 2017 will amount to 2835 792 100 000 rubles, in 2018 - 2728 307.5 million rubles and in 2019 - 2 816 027 500 000 rubles In relation to GDP. corresponding to the share of expenditure in this section "National defense" will be 4.7% in 2016, in 2017 - 3.3%, in 2018 - 3% and in 2019 - 2.8%, "- said in a memorandum.


    It is noted that the share of the total federal budget under the heading "National defense" spending in 2017 will amount to 17.5%, in 2018 and 2019 - 17% and 17.6%, respectively.


    Подробнее на ТАСС:
    http://tass.ru/armiya-i-opk/3744056

    Austin

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    Re: Military budget of the Russian Federation

    Post  Austin on Sat Oct 29, 2016 6:04 pm

    If one looks at the budget figure in 3 years Russia is spending close to 8.5 trillion on defence , which is big money
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    Rmf

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    Re: Military budget of the Russian Federation

    Post  Rmf on Sun Oct 30, 2016 10:55 pm

    http://www.recoverir.com/images/p011_0_00_01.jpg
    just an illustration but you always have to account for extra funds during development , producing new product always has this ""wave"" line , early on financing is low then goes up then peaks in some moment  and then gets lower toward the end or very near end , peak is when most stuff is developing and constructing ,most enginers work ,resources needed etc. if you dont have fund to cover those financing peaks the development time gets streched and overall more expencive then you planned.
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    Project Canada

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    Re: Military budget of the Russian Federation

    Post  Project Canada on Wed Nov 02, 2016 11:16 am




    Russia slashes military spending as revenues shrink

    The protracted slump in oil prices mean the government is no longer able to finance its reform of the defense industry at previous levels.

    As the economy continues to struggle under the weight of low oil prices and sanctions, Russian authorities have decided to cut defense spending by 1,000 billion rubles ($15.89 billion), or by approximately 30 percent.

    The figures became clear from the draft federal budget that the government submitted to the State Duma at the end of October, business daily Kommersant reports.

    Overall, spending on national defense in the federal budget for 2017 is envisaged at 2,840 billion rubles ($45.15 billion), or 3.3 percent of GDP.

    “When revenues are falling, the task of reaching a compromise between different recipients of the budget pie fades into the background. What matters is to ensure, albeit on a reduced scale, the operation of the national economy and the state in all the key areas,” says Alexei Kalachev, an expert analyst with Moscow investmenrt company Finam.

    With oil prices falling, he continues, it would have been strange to continue increasing military spending while welfare spending is reduced. So the share of military spending is gradually falling. For instance, in 2018 defense spending will amount to 3 percent of GDP, while in 2019 it will drop to 2.8 percent.

    Lessons from the USSR
    The government’s decision to cut the defense budget has largely been driven by the example of the final years of the Soviet Union, which – despite falling oil prices – continued to boost military spending, thus sinking into a deep crisis that ultimately led to the break-up of the country.

    “The main lesson in budget planning to be learnt from the budget of the final years of the USSR is the danger of excessive military spending,” says Sergei Khestanov, a macroeconomics adviser to the head of the Otkrytie Broker financial company.

    Khestanov believes this is the reason the government has decided to cut defense spending by a third, despite the fact that the reduction will come as a blow to many defense industry enterprises.

    It is not only in defense that spending cuts are imminent: Practically all items in the draft budget will be reduced, but it is defense that will see the biggest cuts.

    “The only exception is a sharp rise in the 2017 spending on social policy, which has to do with the presidential election cycle: Before elections butter is far more important than guns,” says Alexei Kalachev.

    At the same time, starting from 2017, spending on servicing sovereign debt will see a scheduled boost. By that time, the repository of Russia’s oil-generated superprofits, the Reserve Fund, will be fully exhausted from covering the budget deficit, after which the main source of plugging the budget hole will be increased borrowing.

    Economical approach
    The amount of the budget deficit primarily depends on the oil price: In 2016, the government plans to keep it at 3 percent of GDP.

    “At the moment, the draft budget for the next year is based on quite conservative estimates as regards the oil price, which necessitates a considerable reduction in spending,” explains Mikhail Poddubsky, an analyst with Russian financial services company ТeleTrade. Furthermore, he predicts, it is likely that in future spending will have to be cut even further.

    Given the shortage of public funds, the government has already given up plans to launch several new major projects. Among other things, it has even reduced the funding allocated for the revamp of the country’s main railway lines linking Europe and the Far East: the Trans-Siberian Railway and the Baikal-Amur Mainline.

    Overall, budget expenditure is planned to be cut from 19.8 percent of GDP in 2016 to 16.2 percent in 2019. Under its long-term plan, the Russian Finance Ministry plans to reduce public spending to 13.1 percent of GDP by 2034.

    http://rbth.com/defence/2016/11/01/russia-slashes-military-spending-as-revenues-shrink_644019


    par far

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    Re: Military budget of the Russian Federation

    Post  par far on Wed Nov 02, 2016 9:10 pm

    Project Canada wrote:


    Russia slashes military spending as revenues shrink

    The protracted slump in oil prices mean the government is no longer able to finance its reform of the defense industry at previous levels.

    As the economy continues to struggle under the weight of low oil prices and sanctions, Russian authorities have decided to cut defense spending by 1,000 billion rubles ($15.89 billion), or by approximately 30 percent.

    The figures became clear from the draft federal budget that the government submitted to the State Duma at the end of October, business daily Kommersant reports.

    Overall, spending on national defense in the federal budget for 2017 is envisaged at 2,840 billion rubles ($45.15 billion), or 3.3 percent of GDP.

    “When revenues are falling, the task of reaching a compromise between different recipients of the budget pie fades into the background. What matters is to ensure, albeit on a reduced scale, the operation of the national economy and the state in all the key areas,” says Alexei Kalachev, an expert analyst with Moscow investmenrt company Finam.

    With oil prices falling, he continues, it would have been strange to continue increasing military spending while welfare spending is reduced. So the share of military spending is gradually falling. For instance, in 2018 defense spending will amount to 3 percent of GDP, while in 2019 it will drop to 2.8 percent.

    Lessons from the USSR
    The government’s decision to cut the defense budget has largely been driven by the example of the final years of the Soviet Union, which – despite falling oil prices – continued to boost military spending, thus sinking into a deep crisis that ultimately led to the break-up of the country.

    “The main lesson in budget planning to be learnt from the budget of the final years of the USSR is the danger of excessive military spending,” says Sergei Khestanov, a macroeconomics adviser to the head of the Otkrytie Broker financial company.

    Khestanov believes this is the reason the government has decided to cut defense spending by a third, despite the fact that the reduction will come as a blow to many defense industry enterprises.

    It is not only in defense that spending cuts are imminent: Practically all items in the draft budget will be reduced, but it is defense that will see the biggest cuts.

    “The only exception is a sharp rise in the 2017 spending on social policy, which has to do with the presidential election cycle: Before elections butter is far more important than guns,” says Alexei Kalachev.

    At the same time, starting from 2017, spending on servicing sovereign debt will see a scheduled boost. By that time, the repository of Russia’s oil-generated superprofits, the Reserve Fund, will be fully exhausted from covering the budget deficit, after which the main source of plugging the budget hole will be increased borrowing.

    Economical approach
    The amount of the budget deficit primarily depends on the oil price: In 2016, the government plans to keep it at 3 percent of GDP.

    “At the moment, the draft budget for the next year is based on quite conservative estimates as regards the oil price, which necessitates a considerable reduction in spending,” explains Mikhail Poddubsky, an analyst with Russian financial services company ТeleTrade. Furthermore, he predicts, it is likely that in future spending will have to be cut even further.

    Given the shortage of public funds, the government has already given up plans to launch several new major projects. Among other things, it has even reduced the funding allocated for the revamp of the country’s main railway lines linking Europe and the Far East: the Trans-Siberian Railway and the Baikal-Amur Mainline.

    Overall, budget expenditure is planned to be cut from 19.8 percent of GDP in 2016 to 16.2 percent in 2019. Under its long-term plan, the Russian Finance Ministry plans to reduce public spending to 13.1 percent of GDP by 2034.

    http://rbth.com/defence/2016/11/01/russia-slashes-military-spending-as-revenues-shrink_644019



    Just help the Houthis hit Saudi Oilfields.


    Austin

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    Re: Military budget of the Russian Federation

    Post  Austin on Fri Nov 18, 2016 4:35 pm

    Finance minister: Russia’s 2017-2019 budget to ensure army modernization


    More:
    http://tass.com/economy/913254


    At the session the lawmakers are considering the budget for the 2017-2019 in the first reading.

    "Spending on defense is one of the priorities, the volume of purchases of arms and military equipment is not reduced despite all the difficulties," he said.

    Earlier it was reported in an explanatory note to the budget, that budgetary allocation under the National Defense section as a whole will amount to 2.8 trillion rubles ($43 bln) in 2017, 2.7 trillion rubles ($41 bln) in 2018 and 2.8 trillion rubles ($43 bln) in 2019.

    In relation to GDP, the share of spending on national defense will be 4.7% in 2016, 3.3% in 2017, 3% in 2018, 2.8% in 2019.



    The share of defense in total federal budget spending in 2017 will amount to 17.5%, in 2018 and 2019 it will be 17% and 17.6%, respectively.




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    Project Canada

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    Re: Military budget of the Russian Federation

    Post  Project Canada on Wed Nov 30, 2016 7:20 pm

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    miketheterrible

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    Re: Military budget of the Russian Federation

    Post  miketheterrible on Wed Nov 30, 2016 7:54 pm

    Don't tell me, your one of those Canadians who loves to post whatever sensationalist BS article and state "ooh wow! Lets discuss!". If one has half a brain, they can look at what was the approved budget for defense spending in the next three years. Add to it, our Indian friend Austin pointed it out too. - the procurement system is in place and will be fulfilled even before 2020, with the reduction of 1T rubles per year.

    I think we can put a rest to these articles.
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    Project Canada

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    Re: Military budget of the Russian Federation

    Post  Project Canada on Wed Nov 30, 2016 9:42 pm

    miketheterrible wrote:Don't tell me, your one of those Canadians who loves to post whatever sensationalist BS article and state "ooh wow! Lets discuss!".  If one has half a brain, they can look at what was the approved budget for defense spending in the next three years. Add to it, our Indian friend Austin pointed it out too. - the procurement system is in place and will be fulfilled even before 2020, with the reduction of 1T rubles per year.

    I think we can put a rest to these articles.

    I am wondering why a Russian news site would post such material Question
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    miketheterrible

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    Re: Military budget of the Russian Federation

    Post  miketheterrible on Thu Dec 01, 2016 3:11 pm

    It isn't a Russian news site. It is though however trying to look objective by posting nonsense from other sites. While RI has some of its own content, a lot of the site is a indexation of articles from all around. Much like a blog.

    Content from the site has been terrible for a while.

    Austin

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    Re: Military budget of the Russian Federation

    Post  Austin on Fri Dec 02, 2016 6:05 am

    Russia’s new arms procurement program to be approved in summer 2017

    More:
    http://tass.com/defense/916181

    MOSCOW, December 1. /TASS/. Russia’s state arms procurement program for the years 2018-2025 is planned to be approved in July 2017. Spending is not expected to be curtailed but the focus will be given to high technologies, Russian Deputy Prime Minister Dmitry Rogozin told TASS on Thursday.



    "When we approve it, [the scope of the state program] will be made public - next June," Rogozin said.


    When asked if the program’s spending will be cut, Rogozin said, "I do not think so. It will concentrate on other things, with the accent on high technologies."

    Earlier, Russian Deputy Defense Minister Yuri Borisov has said the new 2025 State Arms Procurement Program implies the development and fielding of next-generation precision-guided weapons. The supreme commander-in-chief had set a task to the defense sector to uphold comprehensive modernization, introduce state-of-the-art military hardware and create cutting-edge weaponry to ensure the advantage over any adversary.

    According to Borisov, this is facilitated by sophisticated sensors providing reliable information round the clock and in any weather and by up-to-date communications gear designed to convey information to decision-makers in real time. "[The sophisticated equipment also includes] computers efficient enough for processing and making a decision, and ‘launch-and-leave’ precision-guided weapons," Borisov concluded.

    http://tass.ru/armiya-i-opk/3831670



    Reducing its volume is not expected, will focuson high-tech, Tass said Russian Deputy Prime Minister Dmitry Rogozin.


    "When we approve it, (the amount of the state program) will be known - in July next year", - said Deputy Prime Minister, answering the question, what will be the scope of the new state program.


    When asked whether the program expected a reduction, Rogozin said: "I do not think." "It will be a different specialization, more on high technologies", - concluded the Vice Premier.

    S
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    kvs

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    Re: Military budget of the Russian Federation

    Post  kvs on Sat Dec 03, 2016 3:01 pm

    Project Canada wrote:
    The Russian Military Is Bracing for Massive Cutbacks?

    http://russia-insider.com/en/politics/russian-defence-spending-its-ekonomika-stupid/ri17823


    Spending at 3% of GDP is nothing to sneeze at. One could argue that spending at 4.5% is excessive and
    unnecessary (assuming WWIII is not happening in 2020).



    The peak spending around 2015 is transient and cannot be used as a reference point. And 3% of GDP is
    actually above the long term level. Do not forget that between 2006 and today Russia's GDP has increased
    in size. So in 2006 Russia was spending less on the military in absolute terms than it will in 2018.

    In 2018 Russia's GDP will be over 90 trillion rubles, so military spending will be over 2.7 trillion rubles
    so the blue curve in the graphic above is just BS. I do not see any crisis whatsoever.

    Austin

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    Re: Military budget of the Russian Federation

    Post  Austin on Sat Dec 03, 2016 4:51 pm

    Rogozin mentioned SAP 2018-2025 Defence spending wont change

    When asked if the program’s spending will be cut, Rogozin said, "I do not think so. It will concentrate on other things, with the accent on high technologies."


    Assuming if they keep it to 20-23 Trillion Spending as SAP-2020 then per year defence spending should be at the tune of 2.5 to 2.8 trillion roubles
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    miketheterrible

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    Re: Military budget of the Russian Federation

    Post  miketheterrible on Sat Dec 03, 2016 5:41 pm

    kvs wrote:
    Project Canada wrote:
    The Russian Military Is Bracing for Massive Cutbacks?

    http://russia-insider.com/en/politics/russian-defence-spending-its-ekonomika-stupid/ri17823


    Spending at 3% of GDP is nothing to sneeze at.   One could argue that spending at 4.5% is excessive and
    unnecessary (assuming WWIII is not happening in 2020).



    The peak spending around 2015 is transient and cannot be used as a reference point.  And 3% of GDP is
    actually above the long term level.   Do not forget that between 2006 and today Russia's GDP has increased
    in size.  So in 2006 Russia was spending less on the military in absolute terms than it will in 2018.

    In 2018 Russia's GDP will be over 90 trillion rubles, so military spending will be over 2.7 trillion rubles
    so the blue curve in the graphic above is just BS.    I do not see any crisis whatsoever.

    They are using old data anyway, since we already know what is the amount in Rubles the government will be spending on the military in 2017, 2018 and 2019. All of this was recently approved and pushed even by the liberalists in the government. So it isn't even worth discussing. They are using old projected data and not official. There is also the fact that the "grey area" of funding from the government, which amounts to 10's of trillions of rubles, would be used on security and specialized projects. So there is also additional funding that wont be listed in the official military budget.
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    A Different Voice

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    Re: Military budget of the Russian Federation

    Post  A Different Voice on Wed Dec 21, 2016 1:17 am

    If some of the numbers I've been reading for the Russian Federation's planned 2017 military spending end up being close to the actual 2017 spending numbers, then deep cuts will need to be made in the delivery of modern weapons systems and the maintenance of existing systems.

    Obviously, we'll have to wait and see. However, there is no way to reduce military spending that much without harming the armed forces.
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    miketheterrible

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    Re: Military budget of the Russian Federation

    Post  miketheterrible on Wed Dec 21, 2016 1:24 am

    What, a trillion rubles? Even then, the majority of the news now state 7% so I have no idea what the actual numbers are.  But you seem to forget that modernization costs money and the majority of purchases made have already been made with overall reduction in the coming years mostly hitting at bonuses and other sectors.  Also, a lot of money has been lost again due to orders not being fulfilled and such so the government was able to get some of the money back.

    Also, Austin pointed out above the numbers.  Might I suggest scrolling up and reading, or even going a few pages back?  SAP2020 is set in stone, and they will even meet objective by 2019.  Let me help you:

    http://www.russiadefence.net/t24p225-military-budget-of-the-russian-federation#176903

    In Trillion roubles

    2011 - 1.515  
    2012 - 1.812
    2013 -  2.106
    2014 -  2.49
    2015 -   3.032  
    2016 -  3.889
    2017 -  2.84
    2018 -  2.728
    2019 -  2.816

    Total =  23,22 Trillion

    SAP -2020  projected a figure of 23 trillion rouble   (  20 Trillion of Military Budget + 3 Trillion for MIC )

    Purpose of SAP is to upgrade the military. So a cut out of the entire budget, part of that goes to procurement. In this case, other areas can be hurt like benefits and new housing projects for soldiers/families, but overall, procurement happens, as per the above calculation. The increases in the last two years has more to do with the fact of making orders to replace critical systems now and while they also get a better idea on what they need in the future, they can stretch out procurement a bit. This will be evident by SAP-2025.
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    Kimppis

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    Re: Military budget of the Russian Federation

    Post  Kimppis on Mon Dec 26, 2016 1:00 am

    If some A Different Voice's numbers are in dollars they are absolutely worth jack's shit when it comes to Russian military. In the near future Russian military budget should be roughly the same per year as it was around 2013, when military modernization was already underway and in large numbers.

    Also, the R&D stage of some major programs like Armata and PAK-FA is almost finished at this point. And it's not like they have to receive exactly the same amount of new equipment yearly as back in 2014-15. Something like 70-80% of that would still be very considerable and probably more or less enough. As was planned from the beginning anyway?

    Btw, what the hell was going on with the Russian military before 2010 or so? Because procurement and modernization was very slow and in many ways non-existent... Around that time they just crossed the magical number of 2 trillion roubles. So that 1.5 to 2 trillion simply went (and still goes) to maintenance? Of course the organization of the military was apparently quite a mess at the time and huge amounts on straight out unneccessary and obsolete equipment were in service. So they went from 20 000 or was it actually closer to 6000-8000 MBTs to around 2500 tanks?

    In any case, they clearly did the right things and now moving forward Russia should permanently have a more or less fully modern military (problems with large ships etc. notwithstanding). Just keep spending that 2-3% of the GDP per year.
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    miketheterrible

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    Re: Military budget of the Russian Federation

    Post  miketheterrible on Mon Dec 26, 2016 3:14 am

    you are correct. The 2015/16 defense budget was used for a lot of things, particularly for starting procurement, tooling plants, modernization of facilities, etc. Now that the money was introduced and pushed for these, the next years can see a reduced budget. The other important thing is that during Russia's modernization of the forces, they also started to move into what they want for an armed forces and also going after the companies that couldn't make the cut and started to change management of those companies or outright sue them so they know not to screw around with state funds again.

    Now the rest is simply maintenance, procurement of more systems and some further changes. Plus on top of that, Russia's equipment is quite cheap compared to the competition so it isn't a problem for them purchasing a lot for less (48 - 50 jets for $1B is a good deal).
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    Kimppis

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    military spending as % of the GDP

    Post  Kimppis on Sat Apr 08, 2017 6:15 pm

    Also, 12 trillion rubles would mean that the share of military spending as % of the GDP would drop to something like 2-2.5%, or even lower by the early 2020s. That just seems "unnecessary" to me, but funnily enough it would also totally destroy the western propaganda myth about "militaristic Russia".

    In general, the current official estimates on the future of the economy are, IMO, extremely pessimistic and conservative. Which is a good thing overall, but in most likely scenario, Russia can easily afford more than 12 trillion during the period.
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    kvs

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    Re: Military budget of the Russian Federation

    Post  kvs on Sat Apr 08, 2017 7:54 pm

    Trump is giving Putin a good pretext to argue down the monetarist 5th column that insists on deficit control at the expense
    of Russian security. Russia needs to stop listening to these scumbag clowns. Run 10% deficits if they are needed. The
    concept of opportunity cost needs to be central to any analysis of the financial, economic and security situation.
    Up front costs (e.g. 7% higher deficit) can be much cheaper than longer term costs of being f*cked over by NATO.

    Putin is facing his ultimate test. If he delivers on the revamping of the military and consolidating the basis of GDP growth,
    then he will be the best Russian leader in history bar none. If he sucks monetarist schlong and imposes fiscal restraint
    at the cost of Russia's economic and global security, then he will have flushed it all down. He will be like a Russian Trump,
    who folded to someone's else's agenda. He needs to remember that the voters are his bosses and not slimy advisers and
    special interests.
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    miketheterrible

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    Re: Military budget of the Russian Federation

    Post  miketheterrible on Sat Apr 08, 2017 8:30 pm

    1.5T rubles per year (if it was approved of 12T) isn't a lot for anything.  Actually, that is the budget for 2011 and that couldn't afford anything and could barely afford the armed forces.  So unless this budget proposed is for something along the lines of being added onto other money (money meant for paying troops and what not) and it is strictly money for procurement, then it is do-able for the Russian military to procure advanced equipment.  If this is the total of the defense spending in a single year, then there wont be any money for procurement.  Hence why the defense ministry and the President will probably tell the liberalists to go to hell, because they still need to build up their military.

    So unless this 1.5T per year is purely for procurement and R&D, there really isn't much they can do with that money.  For those who cant do the conversion, that is roughly $25.8B per year.  Which per year, for procurement, may be only about $5B.  Rest will go be obviously going towards paying for infrastructure for troops, troops training, equipment maintenance, etc.

    Just a note, $25.8B per year, Russia wont reach 70% by 2020 and will definitely not even reach 85% by 2025 in terms of modern weapons in the military.

    Franco, please correct me if I am wrong.  Some state that SAP is fully for equipment purchases, some state it is the total budget for military overall.

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    Re: Military budget of the Russian Federation

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