The decrease home of the Russian parliament, the State Duma, accredited a federal budget on Friday that will increase spending by about 25% in 2024 and allocates a record amount to defense.
The budget for 2024-2026 was developed particularly to finance the Russian military and mitigate the affect of “17,500 sanctions” on Russia, State Duma Chairman Vyacheslav Volodin mentioned.
Under the spending plan, the nation’s largest ever, defense spending is anticipated to exceed social spending subsequent yr for the primary time in Russia’s trendy historical past. The improvement comes because the Kremlin is eager to assist President Vladimir Putin forward of presidential elections in March.
Low unemployment, greater wages and focused social spending ought to assist the Kremlin overcome the home affect of placing the economic system on a struggle footing, however might pose a long-term downside, analysts say.
The budget “is aimed at resolving the war in Ukraine and being ready for a military confrontation with the West forever,” mentioned Richard Connolly, a Russian financial and army professional on the Royal United Services Institute in London.
“This amounts to the full-scale remilitarization of Russian society,” he mentioned.
The Russian Communist Party voted towards the budget, criticizing what it calls “low pensions” and inadequate monetary assist for the aged, Russian state information company Tass reported. The budget will now go to the Federation Council, the higher home of the Russian parliament. – for approval and at last to Putin for signature.
“In these difficult conditions, we managed to adopt a budget that will not only allocate the necessary funds for the defense of our country, but will also provide all the necessary funds to ensure the social obligations of the state,” mentioned the primary deputy chairman of the Duma of State, Alexander Zhukov. , in response to Tass.
The Russian Ministry of Finance expects spending to succeed in 36,660 billion rubles (about 380 billion euros) in 2024, with a projected budget deficit equal to 0.8% of Russia’s gross home product.
Part of the Russian budget is secret because the Kremlin seeks to cover its army plans and evade scrutiny of the struggle in Ukraine. Independent enterprise journalists Farida Rustamova and Maksim Tovkaylo mentioned on their Telegram channel, Faridaily, that about 39% of all federal spending will go to defense and legislation enforcement in 2024.