MOSCOW. June 17 (Interfax-AVN) - The Russian Defense Ministry has said that the financing of national defense and security from next year's budget will be insufficient and has asked that expenditures be updated, Armed Forces Chief-of-Staff Staff and First Deputy Defense Minister Anatoly Kvashnin said at a government meeting on Thursday.
The analysis of documents from the Finance Ministry "does not give grounds to suggest national defense can be ensured and the crisis in the Armed Forces resolved," he said.
Though national defense expenditures are enlarged by RUB83.8bn (USD2.89bn) in the draft budget for 2005, this increase results only from structural changes in budget planning, while the quantity still needs to be analyzed, he said.
Kvashnin also asked the government to consider the financing of state armament programs, funding for larger spending, and transparency of the transition from benefits to compensations for servicemen.
He asked the Finance Ministry to estimate financing on the basis of genuine price rise and not on planned inflation. Inflation was planned at 10% for 2004, but passenger transport charges will actually increase by 18%, cargo transportation charges will grow by 12%, gasoline prices will increase by 16% and diesel fuel prices will go up 13%, he said.
Finance Ministry documents received by the government together with the budget parameters for 2005, plan national defense, security and law enforcement expenditures at 13% of total budget spending.
National defense expenditures will increase by 19.2% to RUB519.464bn (USD17.9bn), while spending on national security and law enforcement will go up 18.9% to RUB388.256bn (USD13.38bn) (13.3% of all spending).