Defense expenses, claims Putin, are not being squandered.
Russian President Vladimir Putin recently addressed the nation, providing insights into the country's defense spending and economic status.
In his speech, Putin emphasised that Russia spends a significant portion of its resources on its own people and loved ones. He also mentioned that Europeans are investing in American production, although he did not elaborate further on this point.
One of the key points Putin highlighted was the increase in defense spending. According to him, the current defense spending in Russia stands at 13.5 trillion rubles, equivalent to 6.3% of the country's GDP. He stated that this spending is not money wasted but rather an investment that has improved the quality of the Russian army.
Interestingly, Putin mentioned that defense spending in Russia is paid for with inflation. He also noted that the current unemployment rate in Russia is at a minimum of just over two percent, which he identified as one of the key indicators of the Russian economy.
Contrary to some concerns, Putin stated that the Russian economy is not in recession. Central Bank Governor Elvira Nabiullina echoed this sentiment, reporting no signs of recession.
In a surprising turn, Putin announced that Russia plans to reduce, not increase, defense spending. This decision comes at a time when NATO member countries have committed to increasing their defense spending to 5% of GDP. The proposal, discussed in Den Haag in 2025, includes raising defense budgets and investments in military-relevant infrastructure.
In contrast, Russia has allocated 32.5% of its 2025 budget for defense. Putin acknowledged that 13.5 trillion rubles out of 223.3 trillion rubles is not a small amount. He also highlighted that Russia spends 'trillions' on its defense-industrial complex.
Putin's speech provided a comprehensive overview of Russia's defense spending and economic status, offering insights into the country's strategic decisions and economic health.
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