Russia’s military spending in 2016 will be cut by 5 percent – Interia

Russia in increasing trouble. Cuts in military spending / © 123RF / Picsel

FR Military expenditure in the current year had been estimated at 3.14 trillion rubles ( 41.6 billion dollars, 163 970 180 050 zł), which would be 4 percent. its GDP. The planned reduction will be approximately RUB 160 billion (US $ 2.2 billion, 8 671 499 906 zł).

According to the interlocutor of the Russian newspaper cutting will include mainly funds for the purchase of weapons and equipment; not affect personal spending.

In 2015, the budget of the Ministry of Defense of Russia was reduced by 3.8 percent. FR military spending last year year accounted for 4.5 percent. GDP, which – according to the ranking presented in January at the World Economic Forum in Davos – was the highest such ratio among the countries with significant military potential.

This ranking, retaining positions 60 countries in 24 different classifications have been drawn up by the American online news magazine “the U.S. News and World Report.” Russia gained there in second place on the list of countries that play the biggest role in the world (most powerful countries) – behind the US and ahead of China. The two countries spend on arms respectively 3.5 and 2.1 percent. its GDP.

According to expert Ruslan Feather, 5-percent reduction in the budget will not affect the combat ability of the Armed Forces and the security of the Russian Federation. – However, if the cuts will continue at this pace, it will put the sector defense and industry in a difficult position and threaten the defense of the country – warned comforters.

The recession, which is the consequence primarily a drastic fall in oil prices in the world, He forced the Russian government to sequester the entire budget for 2016. Cutting spending will amount to 10 percent, so that the budget would save about 700 billion rubles (9.3 billion dollars). In 2015, French government also had to sequester the budget by 10 percent.

The budget of Russia for 2016 is based on a forecast average price of oil at 50 dollars per barrel and an average exchange rate of the ruble – at the level of approx. 63 rubles per dollar. On Friday morning, a barrel of Brent crude oil on the London Stock Exchange paid 33.72 dollars, and the dollar in the stock market in Moscow was given 75.45 ruble.

Download Free: PIT 2015