IHS Janes’s story “Russia announces deepest budget cuts since 1990s” got a lot of attention this week, claiming the Russian defense budget will be reduced by $1 trillion rubles or 25%. It is also wrong and has a bombastic headline to boot. Here is a concise assessment of Russia’s defense budget, the cuts, and the reasons.
Bottom line, the Russian defense budget is going from 3.07 trillion RUB in 2016, to 2.84 trillion RUB in 2017, a reduction of ~7%, which about 1% harsher than announced in October of last year. The original estimate for the 2017-2019 budget plan was a 6% reduction over that period of defense spending. The cuts amount to about 230 billion RUB.
The Russian defense budget is undergoing a sequester to tamp down growth, but is not experiencing large scale cuts, especially relative to other federal departments who were dealt 10% reductions.
The defense budget…
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