Increased Russian war spending will increase inflation and pressure on business – British intelligence

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The proposed budget of the Russian Federation for 2024 envisages an increase in planned defense spending by approximately 68% compared to the same spending for 2023, i.e. defense spending for 2024 in the Russian Federation is about 6% of GDP.

This is stated in the intelligence report of the Ministry of Defense of Great Britain in social networks H.

At the same time, spending on education and health care will be frozen in Russia for 2023, which means a real reduction in spending due to inflation.

Russia will need additional spending to finance benefits and health care costs for the growing number of wounded soldiers and families of the dead.

More than half of those servicemen who were seriously injured and require long-term medical care lost their limbs, and one in five requires amputation of an upper limb, Russian Deputy Labor Minister Oleksiy Vovchenko said on October 17, 2023.

An increase in military spending is likely to contribute to inflationary pressure in Russia. Also, the constant increase in military spending will force the Russian government to make difficult decisions regarding the financing of the war, which will increase the financial pressure on Russian business.

We remind you:

Russia’s national debt for the first half of 2023 increased by 2.2 trillion rubles – despite the fact that 2.5 trillion rubles were planned for the entire year.

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