#11
Nezavisimaya Gazeta
January 17, 2002
2002 DEFENSE BUDGET: IMAGINARY INCREASE
Data on planned defense spending in 2002 has finally been released
Author: Vladimir Georgiyev
[from WPS Monitoring Agency, www.wps.ru/e_index.html]
THE MILITARY REFORMS WILL PUSH THE MOST EXPERIENCED OFFICERS OUT OF THE ARMED
FORCES. THE TOTAL FUNDS SET ASIDE FOR DEFENSE SPENDING IN 2002 ARE OVER 5% LESS
THAN WHAT WAS SET ASIDE FOR THE PURPOSE IN 2001. IT AMOUNTS TO ONLY ONE-QUARTER
OF ALL BUDGET SPENDING, OR 494.6 BILLION RUBLES.
Data on planned defense spending in 2002 has finally been released. Some
calculations and analysis of the information to be found in non-classified
addenda to the Federal Law "On the 2002 federal budget" show that the
total funds set aside for defense spending in 2002 are over 5% less than what
was set aside for the purpose in 2001. It amounts to only one-quarter of all
budget spending, or 494.6 billion rubles.
Meanwhile, the growth is considerable in certain budget items. The Military
Reforms item is not a part of the National Defense. The sums set aside for it
were quadrupled compared to 2001, to 16.5 billion rubles.
Despite the expected reduction of energy prices and sequester, the 2002
budget sets aside more money for Russia's international obligations. Spendings
for military hardware dismantlement are 72% higher (they are not accounted for
in the article National Defense either and yet amount to 10.3 billion rubles).
The part International Activities includes a new articles stipulating spendings
for implementation of the country's international obligations in the sphere of
military-technical cooperation (1.4 billion rubles). In other words, this is the
first time in years that Russia is setting aside some money it will spend on
military cooperation with foreign states in the sphere of arms production.
Moreover, this is the first time Russia (nonsense!) intends to buy some military
hardware and special military equipment which is not produced domestically (no
longer produced, or not yet produced).
What with the plans to reduce the army in 2002, structural reorganization is
planned of the spendings set aside to finance the Armed Forces. According to
Deputy Defense Minister Lyubov Kudelina, the military budget is formed in such a
manner as to make sure that most money will be spent on combat training and
development of the Armed Forces. These purposes will get almost 56% all defense
spending. Research, repair, and rearmament will get 27 billion more than in
2001. Compare this sum with the needs of the army and with the prices, and you
will see that the increase is meager. The money will not suffice to buy new
military hardware for the troops on any noticeable scale. Acquisition is planned
for after 2005 when the Kremlin says the national economic might and GDP have
grown.
Kudelina says that military pay scales in 2002 will be equalized with
salaries of state officials, or at least doubled. It may look like that on
paper, but when compensations and benefits are abolished on July 1, the pay-rise
will be actually infinitesimal.
The real increase in officers' salaries will amount to only 35% on average.
Firstly, however, this growth does not take inflation into account. Secondly, it
does not take into account the money officers will have to pay for housing and
utilities.
In fact, only low-ranking officers may expect any financial improvement.
Lieutenant colonels and colonels, the most experienced officers of the Russian
army, will probably have to resign.
We have seen what such policies lead to. Take Uzbekistan or Kyrgyzstan, for
example. When the Soviet Union collapsed, the new national government did not
provide incentives for experienced officers. All of them eventually ended up in
the Russian army. These days, security of these countries is provided by the
American army and other NATO troops that have come to stay.
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