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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-2001account 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.5are 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.1of 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. 88330mln.) 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

1.1.2.5

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