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Grade Proposed position* posed military posed SSP** (Regulation 922)** SMR** SSP* ranks SMR* 1 2 3 4 5 6 7 50 First Deputy Minister 45000 45000 First Deputy, RF Minster of Army General Defense 49 Deputy Minister 44000 44000 Deputy, RF Minster of Defense Army General 48 42000 42000 General- 20000 Commander-in-Chief, AF type Colonel 47 Military District (MD) 40000 40000 Director-General, Central Office General- 20000 Commander (CO) Department Director, Com- Colonel mander-in-Chief, Corps; MD Commander-in-Chief 46 38000 General- 17000 Lieutenant 45 Deputy, MD Commander 37500 General- 17000 Lieutenant 44 Army Commander 37000 37000 Deputy to: CO Director-General, General- 17000 Department Director Lieutenant Army Commander-in-Chief 43 36500 General- 17000 Lieutenant 42 36000 36000 Director-General: CO, MoD General- 17000 Department : Lieutenant 41 35500 General- 17000 Lieutenant 40 35000 General- 17000 Lieutenant 39 34500 General- 17000 Lieutenant 38 34000 34000 Deputy Director-General: CO, General- 17000 Department : Lieutenant 37 Deputy Army Commander 33500 General- 17000 Lieutenant 36 33000 General- 17000 Lieutenant 35 Corps Commander 32500 32500 Commander, motorized rifle General- 17000 corps, Director-General, Depart- Lieutenant ment in USC, MD 34 32000 General- Major 33 31500 General- Major 32 Deputy Corps Commander 31500 31500 General- Section Head: CO, Department Major RUSSIAN ECONOMY IN trends and outlooks contd 1 2 3 4 5 6 7 31 Division Commander 30500 30500 Commander, motorized rifle General- (tank) division Major 30 30000 30000 Deputy Section Head: CO, De- Colonel 13000 partment 29 Deputy Division Com- 29500 29500 Section H in USC /MD Depart- Colonel 13000 mander ment 28 Brigade Commander 29000 29000 Commander, motorized rifle Colonel 13000 (tank) brigade, Section Head, Army 27 28500 29000 Group Head in Central Of- Colonel 13000 fice/Department Section, MoD of Russia 26 28000 28000 Senior Officer (CO Section, Colonel 13000 Department) 25 Deputy Brigade Com- 27500 Colonel 13000 mander 24 27000 26500 Officer (CO Section, Depart- Colonel 13000 ment) 23 Regiment Commander 26500 26500 Commander, motorized rifle Colonel 13000 (tank) regiment 22 26000 26000 Senior Officer, USC Department. Sub-colonel MD 21 25500 25500 Senior Officer, All-arms army Sub-colonel administration 20 Deputy Regiment Com- 25000 25000 Sub-colonel mander Officer, USC Department, MD 19 24500 24500 Officer, all arms army admini- Sub-colonel stration 18 Battalion Commanding 24000 24000 Commander: motorized rifle Major 11500 Officer (tank) battalion, missile/artillery division 17 23500 Major 11500 16 Deputy Battalion Com- 23000 Major 11500 manding Officer 15 22500 Captain 14 Squadron Commander 22000 22000 Commander: motorized rifle Captain (tank) squadron, anti-air missile battery 13 21500 Senior lieu- tenant 12 Deputy Squadron Com- 21000 Senior lieu- mander tenant 11 20500 Lieutenant 10 Platoon Commander 20000 20000 Commander, motorized rifle Lieutenant*** 10000 (tank) platoon 9 17000 Senior War- rant Officer 8 16500 Senior War- rant Officer 7 Deputy Platoon Com- 16000 Warrant offi- mander cer 6 15000 Sergeant 5 Squad Commander 14500 15000 Commander, motorized rifle Senior Ser- (tank) squad geant 4 12500 Sergeant 6500 3 11500 Junior Ser- geant 2 10500 Private First Class 1 Rifleman 10000 10000 Rank and file positions of sol- Soldier 5000 diers and seamen under contracts * The military ranks, position grades and salaries related to ranks and positions: see the State defined the price of the military service// Military and industrial courier. 2011. April 13 (No. 14).

Section Institutional Issues ** RF Government Resolution of December 5, 2011 No 992 On the establishment of base salaries of the cash allowance of the servicemen who serve under the contract.

*** There is no junior lieutenant rank in the table since it is very rare and assigned only in exceptional cases(e.g. to sergeants who graduated from short-term qualification courses or to lieutenants who are reduced to a lower rank).

Let us do the following comment to the data in Table 34. MA for high-ranking military officials and commanders was increased even above the level that had been discussed when the MA draft laws were reviewed. But the lower ranks of the military hierarchy lost the game.

The gap between the rank-related salaries of the Colonel and General Major was Rb 7,000;

this is actually the amount that makes the difference between the rank-related salaries of the Junior Sergeant and the Colonel - hows that The situation with promises given to contracted soldiers is even worse. In 2012, at the start of the service, the soldier will get not the promised Rb 28,000 but less: Rb 15,00 Rb 20,per month. The soldier will have to wait for two to three years to get the promised allowance, and this will depend on the attitude of his commanding officer. For reference: by the end of 2011, in Russia the average wage went up to Rb 22,000. Thus the voluntary military service has not become attractive on the employment market.

So far the Russian military leaders feel optimistic by declaring the contracting plans (and the contest selection) up to 50,000 people annually (in reality with account of the replacement of those who retire this figure must go up to 70,000) but they hardly take into account the situation on the employment market and the current demographic trends.

6.7.6. Military and financial policy Through 2011, the Ministry of Finance was an ongoing supporter of reduction of the military expense. In May, at the meeting in the RF Government with the agenda on the RF budget for 2012-2014, Minister of Finance made proposals1 to cut down the key additional expenses related to the pre-election obligations of the Kremlin and the White House regarding budget military costs. The key proposal was not to step up the number of officers and contractors of the Ministry of Defense with the consequent saving about Rb 160bn annually up to 2014 inclusively. The Ministry of Finance also proposed not to increase the army but to reduce it further by 15% over next three years and to cut down the budget costs for the state military order during this period by Rb100bn per year. There was another proposal not to increase the financial provision of the saving-and-mortgage system for the servicemen thus saving up to Rb78.2bn in 2012. Besides the Ministry of Finance suggested to cut down costs for the Ministry of Internal Affairs: by Rb 97 bn in 2012 and by Rb 99.1 bn in each of the following two years.

However, the MinFin initiatives were not accepted by the military and political leadership of the country.

As for the federal budget that has been adopted by that time the practice of its execution in 2011 turned back to the pre-crisis scheme with two annual corrections of the initial version2 in summer3 and in autumn1, but with an additional correction in July2 when mainly secret and P. Netreba. The budget gets rid of expenditure units// Commersant, 2011 May 25 (No. 92).

Federal Law of December 13, 2010 No. 357-FZ On the federal budget for 2011 and the planning period of 2012 and 2013.

Federal law of June 1, 2011 No. 105-FZ On amendments in the Federal Law On the federal budget for and the planning period of 2012 and 2013.

RUSSIAN ECONOMY IN trends and outlooks top-secret applications related to the state military order were changed with no modification of the overall federal budget expenditures. The July correction may be viewed as another demonstration of the unusual boom in the Russia military and technical policy during 2011.

As a result of all the said changes, by the year end the federal budget allocations for National Defense increased by 1.3% from Rb1 trillion 517bn 91mn to Rb 1 trillion 537bn 444mn in 2011 with the total growth of budget expenditures by 4.3%. In real terms, these allocations increased by 4.2% (nominal growth 20.3%) vs 2010, while their size remained at 2.8% of the GDP.

The above mentioned figures of military expenditures cannot be drawn from the published Budget Law given that after 2007 the non-transparency of the Russian federal budget has sharply increased, and the analysis of the Budget Law should be supplemented with additional sources; thus in preparation of the review we used the materials of the government version of the federal budget, the monthly report of the Federal Treasury on the execution of the budget in January 2011 and the documents of the State Duma3. Such an indirect approach cannot but influence the accuracy of the evaluations.

In 2011, the degree of secrecy of federal budget expenditures increased by 1.4 vs (Table 35), and its secret allocations reached Rb1 trillion 302 bn 839mn. Secret/classified allocations were returned to subsection Intermediate vocational education and to section on inter-budgetary transfers. The secrecy level remained in such sections as Physical culture and sports and Mass media (these have been independent sections since 2011), and the share of secret expenditures in the overall expenditures for physical culture was more than half (53.31%, according to our estimates) surpassing the section National defense and getting closer to the level of secrecy traditional for the security authorities. Also secret are some allocations for Preschool education and Culture, by tradition. The share of secret allocations to National economics is reaching 2%, and to sub-section Housing goes above 25.03%.

Table The share (%) of secret allocations in the federal budget expenditures in 2005Code and the title of section (sub-section) with secret expendi2005 2006 2007 2008 2009 2010 tures 1 2 3 4 5 6 7 Overall federal budget expenditures 11,33 11,80 10,33 11,92 10,01 10,46 11,0100 GENERAL GOVERNMENT ISSUES 3,67 6,28 5,52 8,66 5,05 4,75 8,0108 International relations and international cooperation 0,01 < 0,01 3,66 0109 State material reserve 82,86 89,23 92,18 90,17 85,01 85,08 88,0110 Fundamental research 2,13 1,22 1,12 0,97 0,78 0,32 0,0114 Other general government issues 0,05 0,72 0,28 4,42 1,56 1,05 0,0200 NATIONAL DEFENSE 42,06 42,77 45,33 46,14 48,09 46,42 47,0201 Armed Forces of the Russian Federation 33,07 35,59 37,11 39,04 40,21 39,03 41,0204 Mobilization of the economy 100,0 100,0 100,0 100,0 100,0 100,0 100,0205 Preparation for and participation in assurance of collective 100,0 100,0 100,0 security and peace-making efforts Federal Law of November 6, 2011 No. 302-FZ On amendments in the Federal Law On the federal budget for 2011 and the planning period of 2012 and 2013.

Federal Law of July 20, 2011 No. 251-FZ On amendments in the Federal Law On the federal budget for and the planning period of 2012 and 2013.

Decision of the State Duma Commission on the review of the federal budget expenditures to support defense and state security of the Russian Federation, in draft federal law No. 607158-5 On the federal budget for and the planning period of 2012 and 2013, M., October 19, 2011.

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