The Finance Ministry and the defense Ministry have differed in assessing the state armament programme

The Ministry of Finance and the Ministry of defense differed in assessing the amount of funding the state armaments program (GPV) for the period from 2018 to 2025, according to “Kommersant” with reference to close to the government apparatus and the presidential administration sources.

According to the publication, in recent times the funding of the GPV-2025 was discussed at a June 28 meeting of the Military-industrial Commission (VPK) Russia under President Vladimir Putin. At its open part, the Russian leader urged to keep up the pace, to draw up the plans even more clear and coordinated and to take into account all possible factors — like the potential of defense enterprises, and financial capabilities in the country.

On the closed part of the meeting the Finance Minister Anton Siluanov announced the ultimate funding of the project GPV — no more than 12 trillion rubles for the entire period up to 2025, which caused heated debate among members of the military, the newspaper said. In particular, the announced amount was not satisfied with defence Minister Sergei Shoigu and Deputy Prime Minister for defense industry Dmitry Rogozin.

According to the sources, the military stressed that safeguarding national security requires twice — 24 trillion rubles, a representative of the Finance Ministry meanwhile said that the budget is not designed for this rapid growth in defence spending. A Federal official said “Kommersant” that the differences to remove immediately failed, “so the parties will prepare their arguments and to explain the position”.

A source in the government argues that the positions of the military and industry in a dispute over an increase in funding of GPV-2025, despite the economic difficulties in the country, strong. Reasons — expansion of NATO infrastructure on the Western Russian borders, the need to maintain nuclear parity with the United States and the launch of serial production of new military equipment to replace the Soviet projects, as well as bringing to mind the experimental work that was already invested billions of rubles.

The time for discussion is still there, the source said “Kommersant” in the government — GPV must be adopted no later than December 2017. Prior to that, the parties will conduct inter-Ministerial consultations. “The final word will be for President,” — said the interlocutor of “Kommersant”.

As recalled by the newspaper, the defense Ministry and the Finance Ministry have been arguing about the volume of financing of the rearmament program. So, the current GPV-2020 was initially estimated at 36 trillion, but under pressure from the financial-economic bloc of the Cabinet and its curator, who was then Deputy Prime Minister, Alexei Kudrin, the cost was reduced to 23 trillion rubles.