Russia’s out-of-control military spending. With spending on the war in Ukraine potentially accounting for 45% of Russia’s budget by the end of the year, what are the implications for the rest of the economy? — Novaya Gazeta Europe
novayagazeta.eu
The Russian economy has been profoundly affected by the war in Ukraine, with the 37% of national spending that currently goes on defence predicted to rise to as much as 45% by the year’s end. As well as contributing to the ruble’s continuing fall, the massive increase in military spending is creating wider problems for the country’s economy that risk repeating the mistakes of the past.

In the first six months of 2023, total budget expenditure rose to almost 15 trillion rubles (€142.3 billion), an increase of 2.5 trillion rubles (€23.7 billion) on the previous year, with defence spending responsible for almost the entire difference, economic analyst Boris Grozovsky says. The Russian government has simultaneously increased military spending while decreasing spending in other sectors, which is “why budget statistics are no longer being released,” Grozovsky added.

  • OwlPaste@lemmy.worldEnglish
    0·
    1 year ago

    Oil prices are high, sometimes they are still selling above sealing price. They are still making more thab enough money from oil and other resources sales to keep financing this war for a long time. Plus every year they get about a million conscripts. Its unfortunate that they are so big that a massive cluster fuck of a war is bot affecting them as much as we are led to believe.

    Compared to the west they had years and years of oil sales to build up a lot of capital to continue financing such wars.

    What we need is to boost ammunition production and provide more military aid/training to Ukrainians. Alot more than now. The front is huge, few tanks won’t make a weather there without being able to chunk through ammunition like theres no tomorrow. So ammunition first and more tanks/planes after.