Russia’s concealed spending reaches almost 5 trillion rubles

Russia’s concealed spending reaches almost 5 trillion rubles

Money spends on weapons, research and software development.

Russia's spending on non-durable weapons (airplanes, tanks, ships, etc.) and intellectual property products (research and development, mineral exploration, the creation of computer software and databases) in 2017 reached 4.85 trillion rubles or almost 5.3% of GDP, RBC reports. The details of these purchases are classified following the law.

Rosstat will not disclose the secret part of the state budget, so RBC took advantage of open data: it subtracted the costs of fixed assets (buildings, transport, equipment, etc.) from the total gross capital formation (19.88 trillion rubles).

The publication concluded that the share of secret expenditures was growing until 2016, then it stopped at 5.3% of GDP and in 2017 fell to 5.27%. At the same time, spending on state defense in 2017 decreased for the first time in 19 years and amounted to about 3.3% of GDP.

Russia ranks sixth in the defense spending ranking of the Stockholm International Peace Research Institute (SIPRI) after the United States, China, Saudi Arabia, India, and France.

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