The authoritative SIPRI institute calculated that Russia's military spending in 2016 increased by 5.9%, to $69.2 billion. This allowed it to displace Saudi Arabia and take third place after the United States and China in defense spending.
Photo: Vladislav Belogrud / Interpress / TASS
Russia ranked third in the world in terms of military spending over the past year: they increased by 5.9% and amounted to $ 69.2 billion, follows from the database of the Stockholm Peace Research Institute (SIPRI) updated on April 24. This is an indicator in current US dollars: nominal costs in national currency are recalculated at the average annual market dollar rate. According to this indicator, Russia overtook Saudi Arabia, which ranked third in 2015, and is second only to the United States ($611 billion) and China ($215 billion), although at times.
The total military spending of the states of the world in 2016 amounted to $1.69 trillion, of which Russia accounts for 4.1% against 36% for the United States and 13% for China. In nominal terms in local currency, SIPRI estimated Russia's military spending over the past year at 4.64 trillion rubles. — an increase of 14.8% compared to the corresponding estimate for 2015.
According to SIPRI
There is no exact definition of what is meant by military spending: various sources may or may not include certain categories in military spending ( see infographic). SIPRI tries to include in its estimate “all expenditures on active armed forces and military activities”, including expenditures on paramilitary structures such as the National Guard, civilian personnel of defense departments, social benefits for the military and their families, defense research and development, military construction, military assistance to other countries. SIPRI excludes civil defense spending (managed by the Ministry of Emergency Situations) and current spending on past military activities (veteran benefits, arms conversion, weapons disposal). Even despite the fact that the latter can be paid from the budget of the Ministry of Defense.
SIPRI notes in a press release that Russia's increase in military spending in 2016 ran counter to the general trend of reducing military spending in oil-producing countries following the reduction in oil prices. Thus, Venezuela reduced military spending by 56%, South Sudan - by 54%, Azerbaijan - by 36%, Iraq - by 36%, Saudi Arabia - by 30%. Apart from Russia, the only oil-exporting countries that have increased military spending are Norway and Iran, the institute's data show. The average price of Brent oil last year decreased by 16% compared to the average price of 2015, the Russian grade Urals fell by 18%.
But the estimate of Russian military spending for 2016 included spending in the amount of about 800 billion rubles. ($ 11.8 billion), intended to repay part of the debt of Russian defense enterprises to commercial banks, Simon Vizeman, a senior researcher at SIPRI, told RBC. These appropriations, unexpectedly allocated at the end of 2016, were positioned by the government as one-time: it was about those taken in previous years under state guarantees to fulfill the state defense order. “If not for these one-time payments, Russia’s military spending in 2016 would have decreased compared to 2015,” Wieseman said.
Since the lion's share of Russia's defense spending goes under secret (closed) budget items, it is impossible to say exactly how much the government spent on repaying defense industry loans. The head of the budget committee of the State Duma, Andrei Makarov, called the figure 793 billion rubles. However, the Accounts Chamber in the operational report on budget execution in 2016 reported that guarantees for 975 billion rubles were terminated. on loans from defense industry enterprises for the purposes of the state defense order.
The one-time cost of closing the "credit scheme" of the defense industry led to the fact that the volume of military spending in relation to GDP in 2016 increased to 5.3% - the maximum in the history of independent Russia, according to the SIPRI note. “This heavy burden comes at a time when the Russian economy is experiencing serious difficulties due to low oil and gas prices and economic sanctions imposed since 2014,” the Stockholm Institute notes.
When assessing Russia's military spending, SIPRI relies mainly on official documents of the Russian state budget, follows from the research methodology (and, for example, such data are not enough for China). In other words, SIPRI combines Russian budget data. In the Russian budget itself there is a functional section "National Defense", for which 3.78 trillion rubles were spent in 2016, and for 2017 it is planned to reduce appropriations by a quarter, to 2.84 trillion rubles. But part of the costs that SIPRI includes in its calculation goes under other budget sections, in particular “National Security and Law Enforcement”.
According to Russian experts
According to Vasily Zatsepin, head of the military economics laboratory at the Gaidar Institute, indirect military spending can also be found in such “peaceful” sections as “National Economy” (capital construction within the framework of the state defense order), “Housing and communal services”, “Health care”, “Social politics” (expenses of the Ministry of Defense). In addition, a small part of military spending goes through regional budgets (2.2 billion rubles in 2016).
Tactical exercises of artillery units of the 5th Combined Arms Army in Primorsky Krai (Photo: Yuri Smityuk / TASS)
As a result, the Gaidar Institute estimates Russia's total military spending related to current and past military activities at 4.94 trillion rubles. (5.7% of GDP) last year - an increase of 15% in nominal terms compared to the previous year. This is the broadest possible estimate, which includes pensions for military personnel (328 billion rubles in 2016), the cost of destroying chemical weapons and disposing of weapons and military equipment - those costs that SIPRI does not take into account, since they relate to "past military activities."
Russia has risen to seventh place in the world in militarization of the economy and fourth in terms of security. In two years, government spending on defense reached 5.3% of GDP, or $69.2 billion. These are the conclusions of the PwC Global Defense Prospects study, which Izvestia has read. The company also expects a break in the trend of recent years to reduce such costs in the world. However, experts noted that defense spending is far from only military operations, but also technological development and an important export item for the Russian Federation.
In 2014, when the previous PwC report was released, Russia's defense spending was only 4.5% of GDP. In two years, government spending on defense reached 5.3% of GDP, or $69.2 billion. PwC divides all countries into six categories according to defense strategy - from solving such tasks at the expense of allies, such as Switzerland and Denmark, to global power leaders. The last category includes only Russia and the United States. Both states spend more than 3% of GDP on defense and are actively involved in security projects around the world.
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The first place among countries in terms of militarization of the economy was taken by Oman with a share of the sector in GDP of 16.75%. The second line belongs to Saudi Arabia (10.41%), the third - to Syria (8.49%). The US is in 17th place with 3.3%.
At the same time, according to the Stockholm International Peace Research Institute (SIPRI), Russia ranks third in the world in terms of state budget spending on defense after the United States and China (without reference to GDP). It is also important that in 2016 all oil-producing countries reduced their defense spending due to falling prices for the main export commodity.
As Mikhail Barabanov, scientific editor of the Arms Export magazine, explained to Izvestia, 2016 was not entirely indicative for Russia to judge defense spending.
In recent years, annual defense spending has not exceeded 2.9 trillion rubles. But last year, the Ministry of Finance paid out 800 billion rubles of state guarantees on loans to enterprises in the military-industrial complex. Then, for these needs, the department paid another additional 200 billion rubles. It was this trillion rubles that led to an increase in spending on national defense in 2016 to 3.9 trillion rubles, he explained.
According to the expert, already this year spending will return to the usual 2.9 trillion rubles, and this amount will not change much in the next three years. According to the expert, due to the increasingly complicated geopolitical situation, Russia needs to increase defense spending - their reduction will lead to the disruption of the rearmament program.
The amount of 2.9 trillion rubles provides a balance between the conduct of military operations and the purchase of weapons, the expert noted.
Budget expenditures for defense needs could be higher, I am sure the head of the Center for Military Forecasting of the Institute of Political and Military Analysis (IPVA), Colonel, Professor of the Academy of Military Sciences Anatoly Tsyganok.
For example, US spending is 10 times greater. We first need to invest in submarines in the Navy. An increase in the space constellation is also urgently needed. The third problem is the training of personnel. There is not enough officers, - the expert explained.
However, Russia in recent years not only spends on defense, but also earns on it. In 2016, arms exports from Russia amounted to more than $15 billion. At the same time, it is important that the export of military-industrial complex products is high-tech and, among other things, contributes to the diversification of the Russian economy, which has been struggling with dependence on oil in recent decades.
Despite the significant export of arms, the "self-sufficiency" of defense budget spending is an unrealizable dream, Anatoly Tsyganok stated.
According to analysts, the world will arm itself again by 2021. PwC expects an increase in global defense spending. For example, the United States, which has reduced its military budget in recent years, will increase it to $611 billion. China and India will further increase military spending.
According to the analysis, the compound annual growth in defense spending between 2017 and 2021 should offset previous cuts in defense budgets between 2012 and 2016 in 45% of the countries analyzed.
Despite the expected increase in spending due to increased threats, for example, in the field of cybersecurity, the defense budgets of countries around the world are still under severe pressure. Among the global trends that could have a serious impact on defense and security, PwC points to the shift of economic power from West to East, demographic changes and the development of technology.
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A powerful and combat-ready army is the key to a significant weight of the country in the international arena. Moreover, in connection with the well-known events in Syria and Ukraine, the military power of different countries is increasingly being given the closest attention. Many ask the question: "Who will win the world war?".
Today we present an annually updated, official ranking of the armies of the world, a list that includes the most powerful armies in the world in 2017.
When compiling a rating, the comparison includes:
- number of armies of the world (regular number of troops, reservists)
- weapons (aircraft, helicopters, tanks, fleet, artillery, other equipment)
- military budget, resource equipment, geographic location, logistics.
Nuclear potential is not taken into account by experts, however, recognized nuclear powers get an advantage in ranking.
By the way, San Marino had the weakest army in the world in 2017 - only 80 people.
The country's military budget is $45 billion. The number of German armed forces is 186,500 people. The German army is completely professional, i.e. There has been no compulsory conscription in the country since 2011.
The Turkish army is the best in the Middle East. The number of the country's armed forces is 510,000 people. Turkey's military budget is $18 billion. There are just over 7 military personnel per thousand inhabitants of the country.
The Japanese army is the seventh in the list of the best. The combat-ready part of the army has 247,000 servicemen. With such a large number of armed forces, the country has a huge defense budget - $49 billion.
The country's military budget is $53 billion. The number of British armed forces - 188,000 military - is the smallest army in the ranking. But the Royal Navy of Britain is the second in the world in terms of tonnage.
Opens a list of the 5 most powerful armies in the world. The country's military budget is $43 billion. The number of French armed forces is 222,000 people. The key to the combat effectiveness of this army is the presence in it of a full range of weapons of its own production, from warships to helicopters and small arms.
The country's military budget is $46 billion. The number of Indian armed forces is 1,346,000 people, the country's army is the third largest in the world.
The largest army in the world is the Chinese army, with 2,333,000 troops. Wikipedia indicates that there are 1.71 military personnel per 1,000 inhabitants of the Celestial Empire. China's military budget is $126 billion.
The Russian armed forces surpass almost all the armies of the countries of the world in terms of the power of weapons in all branches of the military - air, land and sea. The number of the Russian army for 2017 is 798,000 people. The military budget is $76 billion. Among the superpowers, Russia has a very high number of military personnel per 1,000 inhabitants - 5.3 people.
The strongest army in the world, according to Globalfirepower, is American. By the way, it is not the largest in terms of numbers, but the most powerful in terms of available weapons, including nuclear potential not taken into account by experts. The US Army has 1,492,200 men and a defense budget of $612 billion.
Sometimes you can come across the opinion that Russia spends too much money on defense, they say, in the face of sanctions and low oil prices, it's time to think about saving. In fact, our defense spending in the ranking of countries in the world is quite modest. And while other states increase their military budgets, our defense spending as a percentage of GDP is gradually creeping down.
According to experts, this year and next, world defense spending will increase by 5-7%. Experts believe that countries will invest in the construction of ships, aircraft, as well as in missile defense. At the same time, many states are beginning to understand the importance of reliable protection against cyber attacks, which is reflected in the growth of costs in this direction.
Russia, in turn, is pursuing a balanced policy regarding the military budget, not allowing it to become excessively inflated, but at the same time not forgetting the key areas that are of decisive importance in the modern world.
According to the Ministry of Finance, in 2017 the “National Defense” item required 3.3% of GDP, but in 2018 the figure had already dropped to 2.8%. In 2019, the figure will drop to 2.7%, and by 2020 to 2.5% of GDP.
Thanks to a competent approach to the issue of defense spending, the country can boast of a well-equipped, combat-ready and powerful army. US President Donald Trump, when asked if he considers Russia an adversary, said that Moscow has a strong army, but the Russian economy is much smaller than that of China. If you want to learn more about the current state of the Russian economy, we advise you to read the material "".
Summing up, we can say that the country, having incomparably fewer opportunities, was able to demonstrate its strength and power to the world. Due to the prevailing conditions, the country must constantly take measures to ensure its defense capability. Having a strong army will always be a strong deterrent to any adversary.
The United States remains the unattainable leader in terms of defense spending. At the same time, the size of the military budget is only increasing every year. The closest pursuer of the country is China, but the volume of expenditures of the Celestial Empire is 4 times less than that of the United States. China itself tirelessly repeats that its military forces are purely defensive in nature and cannot pose a threat to other countries.
In terms of spending relative to GDP, Saudi Arabia is the leader, spending over 8% of its economy on defense. The country has been actively increasing spending in recent years. Regional conflicts are forcing her to take such a step.
Experts estimate world defense spending this year at $1.6 trillion. Compared to 2017, the amount jumped by 3.3%. Such growth rates have already been called the largest over the past 10 years. The total amount of world defense spending is the largest since the end of the Cold War. The last surge in spending began in 2014 and continues to this day.
| Country | Defense spending, USD | The share of the military budget from GDP |
|---|---|---|
| USA | 714 billion | 3,6% |
| China | 175 billion | 1,4% |
| India | 63.9 billion | 2,5% |
| Great Britain | 60 billion | 2,3% |
| Saudi Arabia | 56 billion | 8,2% |
| Japan | 46.1 billion | 0,9% |
| Russia | 46 billion | 2,8% |
| Germany | 44.8 billion | 1,24% |
| France | 40 billion | 1,5% |
| South Korea | 39.2 billion | 2,6% |
If you need funds to support the defense of your own wallet, then we advise you to look at. These are the smartest options on the market.
Russia's military spending tops $69bn despite falling oil prices, SIPRI report says
Anti-aircraft missile system S-400 "Triumph"
Moscow. April 24th. site - Russia entered the top three countries with the largest military spending. This follows from the annual report of the Stockholm International Peace Research Institute (SIPRI).
Russia increased its spending by 5.9% to $69.2 billion, ranking third on the list of countries with the highest military spending.
Russia ranked third in the world in terms of military spending after the United States and China, however, lagging far behind them, the British Broadcasting Corporation "BBC" notes.
China's military spending increased by 5.4% to $215 billion in 2016, while the United States topped the list by 1.7% to $611 billion. Global military spending in 2016 was $1,686 billion, or 2.2% of global GDP.
In 2016, 55% of the Russian military budget went to finance the state arms program, the report said.
The increase in defense spending in Russia, according to the SIPRI report, in 2016 came against the backdrop of a sharp decline in such spending among oil-producing countries due to falling oil prices.
Defense spending in Western Europe has been rising for the second year in a row - last year they increased by 2.6%. The leader in this race was Italy, whose spending increased by 11%. The same picture is observed in the countries of Central Europe, which increased spending by 2.4% last year, the BBC notes.
In February, Russian Deputy Defense Minister Yuri Borisov announced that more than 1.4 trillion rubles would be spent in 2017 on the purchase of weapons and military equipment.
"Taking into account the financial and economic capabilities of the country, more than 1.4 trillion rubles are provided for the implementation of the defense order in terms of the purchase of weapons, military and special equipment," Borisov said in an interview with Rossiyskaya Gazeta.
As Interfax reported, in May the Defense Ministry will send a draft state armaments program for 2018-2025 to the collegium of the Military Industrial Commission. The program should be formed by July 1 and finally approved at the end of 2017, Russian Deputy Prime Minister Dmitry Rogozin said in an interview with the agency in March. "From January 1, 2018, its implementation should begin," Rogozin said.
Borisov said in February that one of the priorities of the new state program is to achieve by 2020 the Armed Forces of the Russian Federation (RF Armed Forces) with modern weapons and equipment to the level of 70%, the development of nuclear deterrence forces and aerospace defense.
"Among the priorities are the development of communication systems, reconnaissance and control, electronic warfare, unmanned aerial vehicles, robotic strike systems, modern transport aviation. Among the most important tasks is the modernization of high-precision weapons and means of combating them, personal protection systems for military personnel," - said the Deputy Minister of Defense of the Russian Federation.
"The development of the Navy will be envisaged, primarily in the Arctic zone of the Russian Federation and the Far East, as well as the improvement of the technical equipment of the Armed Forces through the modernization of existing weapons and the purchase of weapons, including dual-use ones," Borisov said.
