Russian President Press Secretary Dmitry Peskov believes that it is “absolutely necessary” to increase spending on the country’s national defense in 2024. He said this in a briefing.
Journalists asked a Kremlin representative to comment on the 68% increase in defense spending in the country’s budget.
“Obviously such an increase is necessary, absolutely necessary, because we live in an environment of a hybrid war launched against us, we are carrying out a special military operation, and this requires high costs,” the official said.
The Ministry of Finance assumesHe said that total federal budget expenditures will be 36.6 trillion rubles and revenues will be 35 trillion rubles. At the same time, 29.3 percent of the treasury, that is, about 6 percent of Russia’s GDP, that is, 10.7 trillion rubles, is planned to be spent on national defense.
“I have half a glass but I want a bucket”
In 2023, “hybrid warfare and strategic defense” expenditures will reach 6.4 trillion rubles, allegation inside the section.
“Social Policy” comes second in this year’s draft budget; It allocated 7.71 trillion rubles (21.1% of budget expenditures), the lowest figure since 2011. On average, from 2015 to 2021, up to 28% of the country’s annual budget was spent on social policy.
Minister of Finance Anton Siluanov at the plenary session of the International Financial Forum highlightedThe money included in the draft budget for the next three years will be sufficient “for what was planned”:
“There is a saying that everyone knows that money will never be enough. However, it will be enough for what is planned. Yes, it’s understandable that most people, when creating a budget, say: “I bought half a glass, but I want a bucket.” There is enough money.”
Siluanov added that “no matter how much money there is,” you always “need your head and your hands; then you can spend less money.”
three year plan
On September 22, the Government of the Russian Federation approved the draft federal budget for the next three-year period. In 2024, the income-expenditure ratio is expected to reach 35 trillion rubles to 36.6 trillion rubles; In 2025, 33.5 trillion rubles will come and 34.4 trillion rubles will go. In 2025, the country’s authorities expect revenues of 34.1 trillion rubles against expenses of 35.6 trillion rubles. Thus, the budget deficit will not exceed 0.9-0.8 percent of GDP.
According to the explanatory note to the draft federal budget, the budget deficit this year could be 1.8% of GDP (3.01 trillion rubles).
The budget policy of the state will be carried out in line with “fiscal rules”, according to which external shocks must be compensated and the macro stability of the economy must be ensured.
September 25, Deputy Minister of Finance Alexey Sazanov aforementioned No increase in basic taxes in the 2024, 2025 and 2026 budget drafts:
“It was decided not to increase basic taxes. Accordingly, the main emphasis will be on management, so the revenue plan for next year, managed only by the Federal Tax Service, is set at 14% plus this year.”
It is only in 2024 that money from the National Welfare Fund, Russia’s main “pot”, will be used to finance the federal budget deficit over the entire forecast horizon. Officials will replenish the fund with additional oil and gas revenues from the federal budget for 2023-2025.