In 2024, the Russian authorities will increase military spending, while reducing contributions to the National Welfare Fund and increasing domestic taxes and debt to finance the planned expenditures. This is stated in a new report by the British Ministry of Defense based on intelligence, UNN reports .
The Russian government has ambitious plans to increase spending by 26% in 2024. This is based on optimistic expectations of a 22% increase in revenues, with oil and gas revenues expected to grow by almost 25%,
Details
It is noted that the government will have to reduce its contributions to the National Welfare Fund and increase domestic taxes and debt to finance its planned expenditures.
British intelligence notes that this policy is almost certain to have a negative impact on the economy in the medium and long term by maintaining inflationary pressures or restraining future economic growth.
The sovereign wealth fund is ostensibly intended for the long-term economic well-being of the Russian people, but is increasingly being used to finance its invasion of Ukraine, and its asset value fell by 10% in 2023.
Recall
British intelligence suggestedthat corruption is likely to be one of the factors that significantly undermines the effectiveness of the Russian army.