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Art. 49 of FB
Expenditure related to the past military activities
№ | Item | Code* | Amount, as Rb.mln. | Proportion in FB, as % | Proportion in GDP, as % | Information source |
1 | Military pensions | 1804 | 30650 | 2,56 | 0,4 | Annex 8 to FB |
2 | Arms utilization and liquidation | 2200 | 6036 | 0,51 | 0,08 | Annex 8 to FB |
3 | Conversion of the Defense Sector | 0704 | 250 | 0,02 | Annex 8 to FB | |
4 | Implementation of military reform | 2501 | 4 337 | 0,39 | 0,06 | Annex 8 to FB |
5 | Funding of the State House-building In the composition of expenditure on state capital investment | - | 4880 | 0,40 | 0,06 | Art. 80 of FB |
It is worthwhile to focus on some aggregate expenditure indices that are provided in the table below.
№ | Item | Amount, as Rb.mln. | Proportion in FB, as % | Proportion in GDP, as % |
1 | Overall expenditure on the RF military structure (Armed Forces of RF, other armed forces, military structures and agencies) | 266085 | 22,29 | 3,43 |
2 | Overall military expenditure beyond the RF military structure (Ministry for Nuclear Power, other sectors, ROSTO) | 17337 | 1,45 | 0,22 |
3 | Overall military expenditure ( on the military structure and beyond that) | 283422 | 23,74 | 3,65 |
4 | Aggregate direct and indirect expenditures related to the current and past activities of RF | 329575 | 27,61 | 4,25 |
5 | Overall expenditure on national defense, law enforcement and provision of the state security | 346309 | 29,02 | 4,47 |
6 | The amounts of direct and indirect expenditures related to the current and past activities of RF and all the federal spending on national defense, law enforcement and provision of the state security | 417905 | 35,02 | 5,39 |
The overall expenditure that will be forwarded to the financial agencies of the RF military structure in the course of execution of FB-2001аaccount for over 22% of the expenditure part of the federal budget. This testifies to the expediency of cooperation with them on the part of those Russian enterprises that are interested in obtaining profitable orders that has become stable since 2000. The overall military expenditure beyond the RF military structure is less significant.
The overall expenditures on national defense, law enforcement and provision of security stipulated in p.5аare illustrative in the sense that they characterize the level of expenditure in 2001 (4.47% of GDP) compared with the conditional standard approved by the President in 1998- 5.1% of GDP. Let’s note that it was intended to spend conditionally as much as 3.5% of GDP on the national defense, which is substantially more than 2.77% of GDP provided in p.1аof the first Table. In all, proceeding from the comparison of the current expenditure with the related standards, one may argue that for the whole period of the military reform, i. e. until 2005, the level of this expenditure will unlikely to be decreased.
The last line in the table illustrates the overall expenditure volume exceeding 35% of GDP which is mentioned in the media. Let us note that the expenditures stipulated in the 5th and 6th lines of the table cannot be called military ones. Indeed, they comprise military expenditure, however they also cover a substantial funding (Rb. 88330аmln.) allocated for maintenance of the functioning of courts, prosecutor offices, police, etc. that are not attributed to the military structure in any country worldwide. The level of military arrangements is characterized by a pure military expenditure that, in relation to Russia in 2001, is set in the third line of the table.
Let us also refer to the data on allocation of funds available for analysis: the funds are allocated to the RF Defense Ministry that will spend them on the construction and maintenance of the Armed Forces of RF. These are the expenditures (ECM) that were put in aggregate form in p.1.1. of the first table and are set below to ensure their comparison and evaluation.
№ | Item | Amount, as Rb. mln. | Proportion in FB ( as %) | Proportion in B&M | Information source |
1.1 | Building and maintenance of the Armed Forces of RF (B &M) | 203061 | 17,0 | 100 | Annex 8 to FB |
1.1.1 | Construction of the Armed Forces of RF | 70370 | 5,90 | 34,7 | - |
1.1.2 | Maintenance of the Armed Forces,including: | 132691 | 11,10 | 65,3 | Annex 41 to FB |
1.1.2.1 | Central bodies of military management | 912 | 0,07 | 0,4 | Annex 41 to FB |
1.1.2.2 | Provision of the troops, including: | 91064 | 7,63 | 44,8 | Annex 41 to FB |
1.1.2.2.1 | Monetary allowances to troops and civil stuff | 62543 | 5,24 | 30,8 | Annex 41 to FB |
1.1.2.2.2 | Food provision | 17000 | 1,43 | 8,4 | Annex 41 to FB |
1.1.2.2.3 | Provision of clothes and other belongings | 3628 | 0,30 | 1,8 | Annex 41 to FB |
1.1.2.2.4 | Provision of travel funds in the case of temporary leave and in the case of travel to rehabilitation centers for military personnel and members of their families | 2900 | 0,24 | 1,4 | Annex 41 to FB |
1.1.2.2.5 | Provision of benefits and compensations to military personnel | 1409 | 0,12 | 0,7 | Annex 41 to FB |
1.1.2.2.6 | Other expenses related to the provision of military personnel | 445 | 0,04 | 0,2 | Annex 41 to FB |
1.1.2.2.7 | Single benefits set by the law | 3138 | 0,26 | 1,5 | Annex 41 to FB |
1.1.2.3 | Military training and material and technical provision of troops, including: | 37510 | 3,14 | 18,5 | Annex 41 to FB |
1.1.2.3.1 | Housing and related expenditure | 15953 | 1,34 | 7,9 | Annex 41 to FB |
1.1.2.3.2 | Payment for and storing of special fuel and regular fuel | 12000 | 1,01 | 5,9 | Annex 41 to FB |
1.1.2.3.3 | Transport provision | 5700 | 0,48 | 2,8 | Annex 41 to FB |
1.1.2.3.4 | Maintenance, and refurbishment and repair of facilities and other assets | 1890 | 0,15 | 0,9 | Annex 41 to FB |
1.1.2.3.5 | Other expenditures related to military training and material and technical provision of troops | 1967 | 0,16 | 1,0 | Annex 41 to FB |
1.1.2.4 | The respective expenditure in the area of healthcare and education | 2155 | 0,18 | 1,1 | Annex 41 to FB |
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