The Russian defence budget is expected to be cut by approximately 5.0% to RUB2.73 trillion (USD47.13 billion) in 2018, according to budgetary guidance published by the Ministry of Finance. The reduction in spending is in line with plans laid out under the previous 2017–19 budget.
According to the document outlining the main directions of budgetary policy for 2018–20, spending on National Defence is expected to receive a 3.7% increase in 2019 to reach RUB2.83 trillion before a further marginal 0.5% cut in 2020 to RUB2.82 trillion. The new plans are in line with previous projections for 2018. However, the defence allocation for 2019 is around 0.5% higher than previously expected.
Want to read more? For analysis on this article and access to all our insight content, please enquire about our subscription options: ihs.com/contact