Russian President Vladimir Putin is pursuing a plan to increase defense spending by more than 40 percent next year, following Russia’s first mobilization order since World War II, Bloomberg News reported.
According to a three-year fiscal plan confirmed by Bloomberg, Russia expects its defense spending next year to reach 5 trillion rubles, or about 119 trillion won, an increase of more than 43% compared to the initial budget.
It is predicted that defense expenditure as a percentage of gross domestic product will reach 3.3%, the second largest after social programmes.
This fiscal plan, approved by the government, will then be completed after the Senate and the House of Representatives and the President’s signature.
According to the Stockholm International Peace Institute, Russia last year was one of the top five defense spending countries in the world, spending $65.9 billion, or about 93 trillion won, on defense spending, up 2.9% from the previous year.
However, Russia has been struggling for seven months, with a recent defeat on Ukraine’s Northeast Front.
Bloomberg noted that mobilization orders and an increase in defense spending would be a further blow to an otherwise stagnant economy.