Military Gear & Army Surplus Gear Blog

RUSSIA SLASH IT’S MILITARY BUDGET BY 25% TO US$65 BILLION

RUSSIA SLASH IT’S MILITARY BUDGET BY 25% TO US$65 BILLION


Welcome to WARN, Todays news is. RUSSIA SLASH IT’S MILITARY BUDGET BY 25% TO
US$65 BILLION Russian Federal Treasury released figures
have confirmed that the nation�s defense budget has been cut by 25.5% for 2017, falling
from RUB3.8 trillion (USD65.4 billion) to RUB2.8 trillion. The reduction is a drastic cut in military
expenditure of the country since the early 1990s. The reduction move follows an extended period
of increases to Russian defense spending with growth having achieved an average rate of
19.8% a year since 2011 in nominal terms. However, even after the budget having been
cut, the 2017 budget will remain about 14.4% higher than the level of defense spending
seen in 2014 in nominal terms. The Russian government initially outlined
plans to reduce defense expenditure in the draft of the three-year budget for 2017 to
2019 released in October 2016, IHS Janes’ reported Thursday. The steep drop in spending will continue to
obstruct Russia’s much-hyped defense buildup, which in 2014 promised to replace 70 percent
of the Russian military’s arms with brand new items by 2020. The modernization effort was intended to procure
2,300 new tanks, 1,200 new helicopters and aircraft, 50 new surface ships and 28 new
submarines. Russia’s plans to field a new generation of
nuclear platforms, from new rail-mounted ICBMs to a new strategic bomber will likely be slowed
or placed on hold. Low oil prices have reduced Russia’s economy
apart from high costs associated with the War on Ukraine. Russia�s GDP was $2.053 trillion (in U.S.
dollars) in 2014, according to the World Bank, dropping to $1.331 trillion in 2015 � a
drop of about 35 percent.


Leave a Reply

Your email address will not be published. Required fields are marked *