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Table 3. Expenditures Related to Previous Military Activities Item # S(SS)/TEI/T Agency Amount Rub. % of the % of GDP Source of Expenditure E Codes Code mil RFB information 1 Military pensions, including: 1804 40274 2,07 0,37 Sup. 5 FB - paid via the Defense Ministry 187 37291 1,91 0,34 Sup. 6 FB - paid via the Finance Ministry 092 2983 0,15 0,03 Sup. 6 FB 2 Pensions paid to servicemen of law enforcement agencies, 1805 18562 0,95 0,17 Sum of lines including: a - d a - paid via the Interior Ministry */447/326 188 12791 0,66 0,12 Sup. 6 FB b - paid via the FSS */447/326 189 4514 0,23 0,04 Sup. 6 FB c - paid via the Federal Tax Police Service */447/326 205 472 0,02 0 Sup. 6 FB d - paid via the Ministry of Justice */447/326 318 785 0,04 0,01 Sup. 6 FB 3 Utilization and liquidation of armaments 2200 - 10315 0,53 0,09 Sup. 5 FB 4 Conversion of the defense industry: 0704 250 0,01 0 Sup. 5,6 FB Ministry of Industry, Science, and Technologies 5 Implementation of the military reform, including: 2500 16545 0,85 0,15 Sup. 5 FB - via MES 2501/611 177 103 0,01 0 Sup. 6 FB - via the Defense Ministry 2501/611 187 14997 0,77 0,14 Sup. 6 FB - via the Interior Ministry 2501/611 188 916 0,05 0,01 Sup. 6 FB - via the FBS 2501/611 191 529 0,03 0 Sup. 6 FB 6 Program State Housing Certificates (1998 2002) 0707/ 092 5400 0,28 0,05 Sup. 6 FB In the framework of FTP Housing for 2002 2010 633/7 TOTAL: Expenditures related to the previous military 91346 4,69 0,83 Sum of lines activities of the RF 1-It shall be also noted that at present the RF remembered: in case of good organization of military organization includes the following economic relations between the components of the components: RF Armed Forces, other troops (border military organization and other RF economic agents guards, Ministry of Interior troops, railroad troops, these expenditures are not the simple deduction troops of the government communications and from state revenues as some economists see this. It is information agency, civil defense troops), military also obvious that information about Russias military units (engineering technical troops and road expenditure may be of considerable interest for construction troops), and agencies (Foreign many subjects of the Russias multifaceted economy, Intelligence Service, security services, border especially at the time of growth. It shall be noted that guards, agencies for governmental communications announcements about tenders and auctions for goods and information, Federal Protection Service, Federal and services are regularly published in the Krasnaya agency for ensuring mobilization preparedness). The Zvezda newspaper.

structure of the RF military organization has not The data presented below were derived from the been finalized. Federal budget for year 2002 (FB 2002) and While analyzing the information on the RF structured across the budget recipients, which military expenditures, the following shall be include, first, components of the RF military organization (the Defense Ministry and which (by estimates) exceeds Rub. 16 billion, was subordinated to it Armed Forces (AF), and other restructured and should be repaid before January 1, ministries and agencies disposing of troops, military 2003 (as stipulated by the RF Government Decision units, and agencies. Second, a part of RF military No. 1020, of 29.12.00, On the Repayment of expenditures is directly disposed of by certain non- Indebtedness Related to the State Defense military agencies and organizations. Procurement Order). However, the federal budget It shall be noted that the repayment of the state for year 2002 fails to clearly identify these debt related to the defense state procurement order expenditures and therefore they are excluded from fulfilled up to year 2000 is also linked to the the calculation of aggregate expenditures.

previous military activities of the RF. This debt, Table 4. Aggregate Indicators of Military and Military-Related Expenditures of the Federal Budget for Year Item # Expenditure Amount, % of the % of GDP Rub. mil. RFB 1 General military expenditures (for the military organization and other related items) 353128 18,13 3,(the sum of line 4 of Table 1 and line 6 of Table 2) 2 The amount of total military expenditures and expenditures related to the previous military 444474 22,82 4,activities of RF (the sum of line 1 of this Table and line 7 of Table 3) 3 Aggregate expenditures 458021 23,52 4,for national defense and law enforcement and national security (the sum of lines 01 and 02 of Table 1) Therefore, the total military funds to be received the conventional standard approved by the RF by the financial agencies of the RF military President in 1998 (5.1 per cent of GDP). Moreover, organization in year 2002 in accordance with the this level is not only below the standard level, but budget for this year make more than 17 per cent of also below the level of the preceding year, when it the expenditure items of the federal budgets, what was at 4.47 per cent.

makes it feasible for Russias enterprises interested The situation is similar for the evaluation of in profitable (and, after 2000, stable) orders to expenditures for national defense. The standard cooperate with the military. It shall be noted that expenditure level was set at 3.5 per cent of GDP, the share of military expenditures due to the RF i.e. considerably above the present 2.6 per cent. It military organization in year 2002 was below the shall be also noted that the present level is below figures registered in the preceding year, when it the level registered in the preceding year (2.77 per was at 22 per cent of the federal budget cent of GDP).

expenditures. The meagerness of RF military expenditures, The total military expenditures outside the RF moreover the fact that they are falling at the military organization are much less significant. background of real military threats is in striking The amount of total expenditures for national contrast with military preparations of a number of defense, law enforcement, and national security other countries, first of all, the USA. However, it is shown in item 3 of the last table are illustrative in the subject of another analysis.

V. Tsymbal, Ye. Lyuboshits, E. Vatolkin terms of characterization of the expenditure level in year 2002 (4.18 per cent of GDP) as compared with

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