Russia dropped out of the top five countries with the largest defense budgets

Russia for the first time in several years, lost his place in the top five countries with the largest defense expenditures, from the annual report Annual Defence Budgets Report military analysis publication IHS Jane’s (IHS Markit group). The budget of Russia in 2016 included the first since the end of 1990-ies the defence cuts, with the result that Russia has dropped from fourth to sixth largest military budgets in the world, according to a press release, IHS, Markit, about the study. Russia has overtaken India and Saudi Arabia.

According to IHS Jane’s, Russia’s defense budget in 2016 reached $48,45 billion against $51,84 billion a year earlier (in constant 2016 dollars). “In the foreseeable future of 2015, it seems, will remain the peak of defense spending of Russia,” the company wrote. In 2017, spending on defense will continue to decline, analysts expect IHS. The official budget of Russia in the direction of “national defense” in 2017 will be reduced by 27% compared to 2016, to 2.84 trillion rubles ($42 billion at the average exchange rate of the ruble in the budget), it follows from the draft Federal budget for the next three years.

The Indian defence budget grew by 8.6%, to $50.7 billion in 2016, and she climbed to fourth place, behind only the United States, China and the UK. While IHS expects that in 2018, India will surpass both the UK, which now spends on defense $53.8 billion a year, and will be the third largest in the world. The US and China are far ahead: in 2016 they spent on defense, $622 billion and $192 billion respectively.

In 2016, the Russian budget expenditures by section “national defense” will be 3.89 trillion rubles, formally at 700 billion rubles. more than in 2015. But the sharp rise is due to the government’s decision to repay government-guaranteed loans to defense enterprises, taken a few years ago for the state procurement. Excluding these one-time expenditures defense expenditures would be in 2016 about 3.1 trillion — slightly less than in 2015 (3,18 trillion). And comparable prices 2016 defense spending in 2015, which IHS calls the peak for Russia was even greater at about 3.4 trillion rubles, follows from recent studies on the Russian budget. The cutoff point for data collection IHS Jane’s military budgets was 6 December.

IHS predicts that under current plans Russia on the size of defense spending will give way to 2020, and even France and down to the seventh position in the world. France’s defense budget in 2016 reached $44.3 bln — $4 billion lower than in Russia.