Share
Despite the devastating impact on Ukraine since its invasion by Russia in February 2022, the fiscal toll on Russia has been surprisingly modest, according to an analysis by The Economist.
Russia’s War Budget Estimation
Navigating the complexity of Russia’s military budget, its annual invasion cost is estimated at 5 trillion rubles ($67 billion), accounting for approximately 3% of GDP. This is quite low compared to historical war costs, where during World War II, the USSR and the United States spent up to 61% and around 50% of their GDPs, respectively.
The Underpinning Factors
Three key reasons account for Russia’s low war spending. Politically, the Russian government prefers to label the invasion as a “special military operation,” which wouldn’t justify high GDP expenditures. Economically, escalating the war effort could harm citizens through inflation, public debt, or higher taxes— a risky move for Russian President Vladimir Putin ahead of the 2024 elections. Lastly, the efficiency of modern armies has improved, requiring fewer personnel and more precise equipment, thus reducing defense costs while still maintaining military potency.
Read more at The Economist.
RELATED TOPICS:
Categories
Arizona Governor Vetoes Bill to Ban Teaching Antisemitism in Arizona’s Public Schools
US Rep. LaMonica McIver Indicted on Federal Charges From Skirmish at New Jersey Immigration Center
US Military Bases to Restore Names Changed After Racial Justice Protests, Trump Says
An Unknowing Fresno County Gave Community Medical $2.7M While Hospital Engaged in Kickback Scheme
Wall Street Ends Higher as Investors Track Progress of US-China Trade Talks
