photo credit: Yonhap News
Russian President Vladimir Putin is pursuing a plan to increase defense spending by more than 40 percent next year, following the first mobilization order in Russia since World War II, Bloomberg News reported.
According to a three-year fiscal plan confirmed by Bloomberg, Russia expects its defense spending next year to reach 5 trillion rubles, or regarding 119 trillion won, an increase of more than 43% compared to the initial budget.
Defense spending as a percentage of gross domestic product is projected to reach 3.3%, the second largest following social programs.
This fiscal plan, approved by the government, will then be finalized following the Senate and House of Representatives and the signature of the President.
According to the Stockholm Institute for International Peace, Russia last year was one of the world’s top five defense spending countries, spending $65.9 billion, or regarding 93 trillion won, on defense spending, up 2.9% from the previous year.
However, Russia has been struggling for seven months, with a recent defeat on the Northeast Front of Ukraine.
Bloomberg noted that mobilization orders and increases in defense spending would be a further blow to an otherwise stagnant economy.