Analysts by Bloomberg called on Russia to cut military spending in favor of schools

The government of Russia to stimulate economic growth it is necessary to redistribute budget expenditures from military articles in favor of education and health and infrastructure, said ten surveyed by Bloomberg analysts. Only one-fifth or less of respondents believe that it is necessary to increase spending on social, communal and defense articles. In total the survey was attended by 20 economists, according to Bloomberg.

In the long term, Russia needs urgently to reduce the share of unproductive investment in weapons and military equipment, said the analyst PSB Sergey Narkevich. “The burden of military spending may be unsustainable in an era of low commodity prices. At the same time, the redistribution of spending on education and infrastructure will improve the prospects of the Russian economy”, — he said.

It turned out that the defense is “one of the key priorities for the decision-makers, said the head of “Fiscal policy” the Economic expert group Alexander Suslin. “The current cost structure of the budget can not perform the task of stimulating economic development”, — said Suslina.

In 2013, the international monetary Fund, studied the budgets of the 56 countries in 1970-2010 years, found that only the reallocation of expenditures in favor of education results in statistically significant growth, while the increase in other budget items this has no effect.

Share of budget expenditure on education in GDP Russia occupies one of last places among the members of the Organization for economic cooperation and development. Other large developing countries like Brazil and South Africa spend almost twice as much, says Bloomberg. In 2015 the share of the defense articles has increased to 3.9% of GDP from 2.5% five years ago, the social expenses — up 13% from 11%, while spending on education remained virtually at the same level of 3.8%.

In 2015, Russia has spent for military purposes to 2.9 trillion rubles — almost a trillion dollars (or 48%) more than in 2014-m, it follows from statements submitted by Russia to the UN Office for disarmament Affairs (UNODA). More in 2015, Russia has spent on the Navy — 700,3 billion rubles, which is 38.6% more than in 2014. Expenditure on air force (mid-2015 — the aerospace forces) grew by 66% to 662,4 billion.