While nominal spending increased.
In the past year, real spending on defense has decreased, despite a nominal increase in funding. It is reported by the Stockholm international Institute for peace studies (SIPRI).
So, although defense spending has increased from 79 billion in 2015 and 87.5 billion in 2016. But really, in the currency in fixed prices, the figure fell from us $3.62 billion to $3,42 billion. Therefore, in comparison with the year 2015, in 2016 the share of defense spending dropped from 4% to 3.8% of GDP.
Analysts attributed the decline in defense spending in 2016, a reduction in the intensity of the fighting in the Donbass.
“However, fighting broke out repeatedly in 2016, military spending is expected to increase in 2017, partly in the purchase of new equipment,” the study says.
At the same time, Russia increased its real defence spending from $66.4 billion in 2015 to $69.2 billion last year. Now in Russia the army spend 5.3% of GDP.
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