A record Russian budget will boost defense spending, shoring up Putin's support ahead of election
Russia’s State Duma passed a record federal budget in its second reading which aims to increase spending by around 25% in 2024, with record amounts going on defense
LONDON — Russia's State Duma took a step forward Wednesday towards approving its biggest-ever federal budget which will increase spending by around 25% in 2024, with record amounts going on defense.
Defense spending is expected to overtake social spending next year for the first time in modern Russian history, at a time when the Kremlin is keen to shore up support for President Vladimir Putin as Russia prepares for a presidential election in March.
Record low unemployment, higher wages and targeted social spending should help the Kremlin ride out the domestic impact of pivoting the economy to a war footing, but could pose a problem in the long term, analysts say.
The draft budget «is about getting the war sorted in Ukraine and about being ready for a military confrontation with the West in perpetuity,” said Richard Connolly, an expert on Russia's military and economy at the Royal United Services Institute in London.
“This amounts to the wholesale remilitarization of Russian society,” he added.
Russia’s finance ministry said it expects spending to reach 36.66 trillion rubles (around $411 billion) in 2024 with a predicted budget deficit of 0.8% of Russia’s gross domestic product.
Part of the Russian budget is secret as the Kremlin tries to conceal its military plans and sidestep scrutiny of its war in Ukraine. Independent business journalists Farida Rustamova and Maksim Tovkaylo said on their Telegram channel Faridaily that around 39% of all federal spending will go on defense and law enforcement in 2024.
Analysts suggest Russia is in third place globally for
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