Will hit the economy: Putin wants to increase defense costs almost twice - Bloomberg

The publication writes that Vladimir Putin has greatly worsened the situation with the production and budget deficit in the Russian Federation. Yes, the declared mobilization caused a large leakage of frames abroad. Russian President Vladimir Putin is going to spend a much larger amount on his armed forces in the next two years. Yes, the Russian Federation began to adapt its budget to the needs of war with Ukraine, which Bloomberg writes.

The publication writes that defense costs should now exceed the initial budget assumptions of more than 43%next year, while the relevant categories of national security and law enforcement agencies will increase by more than 40%. Journalists write that budget forecasts are changing as priorities are shifting in favor of the Armed Forces.

According to the Stockholm International Institute for World Research (SIPRI), the National Defense Article in the budget of Russia is about three -quarters of its total military expenditures. The budget plan provides for a call for almost 16 billion rubles in 2023 and 16. 5 billion rubles annually in 2024-2025. Most other military expenditures remain classified. According to economist Alexander Isakov, according to the institute, mobilization will first of all hit production.

The decline is expected to be approximately 3. 75%. The fact is that the workforce will be significantly reduced, as mobilization has caused the so -called "brain leak" into safe places and other countries. In fact, the same thing was repeated in February, when the Russian Federation began a full -scale invasion of Ukraine. Journalists write that according to recent forecasts, the Russian budget deficit will increase to 2% of GDP next year from 0. 9% in 2022.

The government will fund the deficit mainly with debt and reserves. The plan also provides borrowing up to $ 1 billion a year in foreign currency. Earlier, Focus reported that Putin's new threats are pushing the European Union to significantly strengthen the sanctions. Journalists write that the oil pricing plan may face a lot of obstacles. However, if the decision is made, it should be strongly hit by Moscow's income.