Putin approves big military spending hikes for Russia's budget
Russian President Vladimir Putin attends the Collective Security Treaty Organization (CSTO) summit in Minsk, Belarus, November 23, 2023. Sputnik/Valery Sharifulin/Pool via REUTERS/File Photo Purchase Licensing Rights
MOSCOW, Nov 27 (Reuters) - Russian President Vladimir Putin gave his official approval to a significant increase in military spending that will see around 30% of fiscal expenditure directed towards the armed forces in 2024 as he signed draft budget plans into law on Monday.
Moscow is diverting ever more resources towards prosecuting its war in Ukraine. Spending on defence and security combined is set to reach around 40% of all budget expenditure next year.
Spending on defence is set to increase by almost 70% in 2024 from 2023.
Russia has an ambitious 2024 revenue target of 35.1 trillion roubles ($391.2 billion) next year, a 22.3% planned increase year-on-year, based on assumptions of high oil prices. Analysts say the government may be forced to hike business taxes if those assumptions should prove optimistic.
The budget plans had already been approved by lawmakers in both houses of parliament, the State Duma and Federation Council.
($1 = 89.7230 roubles)
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Writing by Alexander Marrow; editing by Grant McCool
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