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Reuters: Russia doubles defense spending plan for 2023 (kyivindependent.com)

submitted 1 year ago by [email protected] to c/[email protected]

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Russia has doubled its defense spending plan for 2023 to more than $100 billion, which makes up one-third of all public expenditures, Reuters reported on Aug. 4.

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[–] camelCaseGuy 5 points 1 year ago (1 children)

With which money?

[–] [email protected] 1 points 1 year ago* (last edited 1 year ago)

It's deficit spending. From earlier in the year:

https://www.reuters.com/markets/europe/russia-swings-29-bln-first-quarter-budget-deficit-2023-04-07/

Russia swings to $29 bln first-quarter budget deficit

Russia's plan currently envisages debt issuance through OFZ treasury bonds of 2.5 trillion roubles, with another 1 trillion in borrowing permitted to replace spending from the National Wealth Fund.

The widening deficit means the corporate tax burden is very likely to rise in coming years, said Alfa Bank Chief Economist Natalia Orlova.

"The large budget deficit...increases nervousness on the market in relation to the price that geopolitical tensions are costing, and requires efforts directed at improving budget revenues," she said.