Russia to increase defense budget by nearly 70% in 2024

Russia's Finance Ministry said Moscow plans to increase its defense budget by 68% in 2024, which the Kremlin said is "absolutely necessary."

A document released by the Russian Finance Ministry today said the country's defense budget next year is nearly 10.8 trillion rubles (more than $111 billion), accounting for about 6% of Russia's GDP.

Russia's planned defense budget is about three times higher than the total 2024 budget for education , environmental protection and health care, according to AFP analysis. The amount is 68% higher than last year's defense budget.

“The focus of economic policy is shifting from fighting the crisis to promoting national development goals,” the Treasury said in the document. These goals include “strengthening the country’s defense capabilities” and “integrating” the four regions Russia annexed last year: Lugansk, Donetsk, Kherson and Zaporizhzhia.

Russian reserve forces in Rostov in October 2022. Photo: Reuters — Russian reserve forces in Rostov in October 2022. Photo: *Reuters*

Kremlin spokesman Dmitry Peskov said at a press conference the same day that increasing Russia's defense budget was "absolutely necessary." He affirmed that Russia was participating in a multi-front war waged by the West.

The news of the increased defense budget comes as Russia's Central Bank warned that economic growth will slow in the second half of 2023, with inflation exceeding its 4% target.

After launching the war in Ukraine in late February 2022, Russia has been hit with many strong economic sanctions from the US and its allies. The West wants to increase economic pressure to cut off financial supplies for the campaign and force Russia to end the conflict.

However, President Vladimir Putin and many Russian officials say the country has largely weathered the storm of Western sanctions.

Thanh Tam (According to AFP, Reuters)

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