MOSCOW. July 21 (Interfax-AVN) - The Ministry of Economic Development and Trade foresees a decrease in the share of defense spending in relation to the GDP in the next three years.
"The increase of the military budget is not a sign of the country's upcoming militarizing. The share of national defense spending in relation to the GDP will fall steadily in the next three years," a competent source in the ministry told Interfax- Military News Agency on Monday.
National defense spending will amount to 2.6 percent of the GDP in 2004, 2.4 percent in 2005, and 2.3 percent in 2006, he stressed.
"The paradoxical situation when direct spending is growing and its share in relation to the GDP is declining can be explained by the expected serious increase of the GDP. This year, the GDP is expected to reach RUB1,430bn (USD47bn), in 2004, it will grow to RUB1,550bn (USD50.95bn), and in 2006, the GDP is expected to exceed RUB2,000bn (USD65.75bn)," the source said.
In compliance with the Main Parameters of the Country's Social and Economic Development until 2006 worked out by the Economic Development and Trade Ministry, federal budget expenditure on national defense will grow constantly. It will amount to RUB344.5bn (USD11.32bn) this year, RUB391.4bn (USD12.87bn) in 2004, RUB428.7bn (USD14.09bn) in 2005, and RUB458.8bn (USD15.08bn) in 2006.