Russia is one of the three countries with the largest military expenditures. Expenditures of the countries of the world on weapons Expenditures on military expenditures
The authoritative SIPRI institute calculated that Russia's military spending in 2016 increased by 5.9%, to $69.2 billion. This allowed it to supplant Saudi Arabia and take third place after the United States and China in defense spending
Photo: Vladislav Belogrud / Interpress / TASS
Russia took third place in the world in military spending over the past year: it increased by 5.9% and amounted to $69.2 billion, according to the database of the Stockholm Peace Research Institute (SIPRI), updated on April 24. We are talking about the indicator in current US dollars: nominal expenses in national currency recalculated at the average annual dollar market rate. According to this indicator, Russia has surpassed Saudi Arabia, which ranked third at the end of 2015, and is second only to the United States ($611 billion) and China ($215 billion), although by several times.
The total military expenditures of the world's states in 2016 amounted to $1.69 trillion, of which Russia accounted for 4.1% versus 36% for the United States and 13% for China. In nominal terms in local currency SIPRI estimated Russia's military spending over the past year at RUB 4.64 trillion. — an increase of 14.8% compared to the corresponding estimate for 2015.
According to SIPRI
There is no precise definition of what is meant by military spending: different sources may or may not include certain categories of military spending ( see infographic). SIPRI tries to include in its assessment “all expenditures on active armed forces and military activities,” including expenditures on paramilitary structures such as the National Guard, civilian defense personnel, social benefits for military personnel and their families, defense research and development, military construction, military assistance to other countries. SIPRI excludes from consideration expenditures on civil defense (under the jurisdiction of the Ministry of Emergency Situations) and current expenditures on past military activities (benefits to veterans, conversion of weapons production, elimination of weapons). Even though the latter can be paid from the budget of the Ministry of Defense.
SIPRI notes in a press release that Russia's increase in military spending in 2016 went against the general trend of reducing military spending in oil producing countries following the decline in oil prices. Thus, Venezuela reduced military spending by 56%, South Sudan- by 54%, Azerbaijan - by 36%, Iraq - by 36%, Saudi Arabia- by 30%. Apart from Russia, among the oil-exporting countries, military spending increased only in Norway and Iran, data from the institute show. The average price of Brent oil last year decreased by 16% compared to the average price of 2015, the Russian Urals grade fell in price by 18%.
But the estimate of Russian military spending for 2016 included expenditures amounting to about 800 billion rubles. ($11.8 billion), intended to repay part of the debt of Russian defense enterprises to commercial banks, Simon Wieseman, senior researcher at SIPRI, told RBC. The government positioned these allocations, unexpectedly allocated at the end of 2016, as one-time ones: we were talking about funds taken in previous years under state guarantees to fulfill state defense orders. “If not for these one-time payments, Russia’s military spending in 2016 would have decreased compared to 2015,” Wiseman said.
Since the lion's share of Russia's defense spending goes through secret (closed) budget items, it is impossible to say exactly how much the government spent on repaying defense industry loans. The head of the State Duma budget committee, Andrei Makarov, called the figure 793 billion rubles. However, the Accounts Chamber in its operational report on budget execution in 2016 reported that guarantees for 975 billion rubles were terminated. for loans to defense industry enterprises for the purposes of state defense procurement.
One-time expenses for closing the “credit scheme” of the military-industrial complex led to the fact that the volume of military spending in relation to GDP in 2016 increased to 5.3% - the maximum in the history of independent Russia, according to the SIPRI certificate. “This heavy burden comes at a time when the Russian economy is experiencing serious difficulties due to low prices on oil and gas and economic sanctions introduced since 2014,” notes the Stockholm Institute.
When assessing Russian military spending, SIPRI relies mainly on official documents of the Russian state budget, as follows from the research methodology (and, for example, there is not enough such data for China). In other words, SIPRI combines Russian budget data. The Russian budget itself has a functional section “National Defense”, for which 3.78 trillion rubles were spent in 2016, and for 2017 it is planned to reduce allocations by a quarter, to 2.84 trillion rubles. But part of the expenses that SIPRI includes in its calculations goes through other budget sections, in particular “National Security and Law Enforcement.”
According to Russian experts
According to Vasily Zatsepin, head of the laboratory of military economics at the Gaidar Institute, indirect military expenditures can also be found in such “peaceful” sections as “ National economy"(capital construction within the framework of the state defense order), "Housing and communal services", "Healthcare", "Social policy" (expenses of the Ministry of Defense). In addition, a small part of military spending goes through regional budgets (RUB 2.2 billion in 2016).
Tactical exercises of artillery units of the 5th Combined Arms Army in the Primorsky Territory (Photo: Yuri Smityuk / TASS)
As a result, the Gaidar Institute estimates Russia's total military expenditures related to current and past military activities at 4.94 trillion rubles. (5.7% of GDP) over the past year - an increase of 15% in nominal terms relative to the previous year. This is the broadest possible estimate, which includes pensions for military personnel (RUB 328 billion in 2016), costs for the destruction of chemical weapons and weapons disposal, and military equipment- those expenses that SIPRI does not take into account because they relate to “past military activities”.
Global defense spending amounted to $1.65 trillion in 2016. The US share in the world is 37.2%. All NATO countries account for 890 billion in the military budget, and the US occupies almost 70% of NATO! Military spending on the US and allies is 1.09 trillion or 2/3 of the world.
Since 2011, there has been a downward trend in military spending from both the United States and its allies. If the decrease in spending in the United States is due to the well-known processes of winding down active offensive operations in Iraq and Afghanistan, then the decrease in spending from allies is mainly associated with the strengthening of the dollar.
The rest of the world outside the US zone of influence is increasing military spending. The main contributions come from China, Russia and India.
In the table, strategic allies of the United States are marked in red (which implies joint participation in military operations and unconditional support for US actions in the international arena), and states allied to the United States are marked in blue.
In most European countries, military spending to GDP does not exceed 1.5%. 
The United States is reaching an average level of military burden on the economy - about 3.3% of GDP. Expenses were at this level from 1995 to 2005. In China no more than 2%, and in India an average of 2.5%. However, Russia in 2016 set a record for military spending to GDP. Never before in modern Russia have expenses been so high - 5.3%. The previous maximum was 4.9% in 2014 and at the time of the collapse of the USSR.
Slightly above 5% is the typical level for Israel over the past 6-7 years. In 2016, Russia was in 7th place in terms of military spending to GDP. Ahead are Oman, Saudi Arabia, Algeria, Kuwait, UAE, Israel and possibly Qatar (no data on the latter).
The table sorts for the leading 50 countries of the world.
In relation to per capita expenses, Russia is about $500, which is quite decent, considering the sagging exchange rate. This is the same as in Germany and more than in Italy, Canada, Spain and even 2.3 times more than Turkey (which is at the epicenter of the war). 
Taking into account purchasing power parity and the cost of comparable military equipment, expenses in Russia are only 1.5 times lower than in the United States (per capita), and not 3.9, if calculated at face value, and literally several times higher than in leading European countries. Although Russia may have parity with the United States, it depends on how you calculate PPP for the military sector (it is somewhat different from the civilian sector). 
At least according to formal indications, the intensity of military spending in Russia is now at its maximum. Regarding public sector expenditures, it is at least 50% higher than the historical norm for Russia.
Statistics from Sipri.
No country in the world yet comes close to the United States in terms of military spending. In 2014, US military spending reached $571 billion, far ahead of second-place China at $129.4 billion. However, when military budgets are considered as a percentage of a country's GDP, the situation becomes very different.
Saudi Arabia is spending more on its military than ever before, increasing its military budget by 17 percent in 2014. Military spending currently accounts for at least 10.4 percent of the kingdom's GDP, according to estimates from the Stockholm Peace Research Institute (SIPRI). By contrast, Washington's enormous military spending amounts to "only" 3.5 percent of GDP. In China, military spending fell to 2.1 percent.
Israel spent about $23 billion on its military in 2014, and SIPRI estimates the figure was 5.2 percent of GDP. Russia has embarked on a major military equipment upgrade program, bringing the country's military spending to an estimated 4.5 percent of GDP in 2014. This year, according to budget data, the figure has increased significantly, by more than 9 percent, in first-quarter GDP, although that rate of spending growth is certainly unsustainable.
Meanwhile, Saudi Arabia has replaced India as the world's largest importer of military equipment, according to IHS Jane. Between 2013 and 2014, Saudi Arabia's arms imports increased by 54 percent to $6.46 billion. In 2014, Saudi Arabia and the United Arab Emirates imported $8.6 billion worth of military equipment - more than all countries imported Western Europe, taken together.
The flow of weapons is showing some signs of slowing, but the Kingdom continues to strengthen its military to counter regional threats including Iran and the Islamic State. In fact, continued shipments of weapons such as F-15 and Typhoon fighter jets could increase imports by 52 percent to $9.8 billion in 2015.
In 2014, India imported military equipment worth $5.57 billion, remaining in second place in the world. China completes the top three, with $2.6 billion worth of arms imports.
The global market for security systems and security equipment is growing at no less a pace than the arms market. According to research by The Freedonia Group, this market will grow annually by an average of 6.8 percent and will reach $126 billion by the end of 2018.
The fastest growth in the need for security systems will be observed in South and Central America, Asia and Africa. At the same time, the share of electronic security equipment, which already accounts for about 2/3 of the global market, will continue to grow in the coming years.
Russia's share of the global market for security systems and equipment is only about 1 percent. At the same time, domestic systems are quite in demand on the domestic market, and their quality is not inferior to many foreign analogues. According to the website naoxrane.ru, which sells, among other things, security and fire alarm systems and systems of well-known brands for legal entities and individuals, the cost of installing such a system ranges from 20 to 70 thousand rubles, which is quite affordable for both small businesses and apartment owners or cottages.
Sometimes you can come across the opinion that Russia spends too much money on defense, saying that in the conditions of sanctions and low oil prices, it is time to think about saving. In fact, our defense spending is quite modest in the ranking of countries in the world. And while other states are increasing their military budgets, our defense spending as a percentage of GDP is gradually creeping down.
Experts estimate that global defense spending will increase by 5-7% this year and next. Experts believe that countries will invest in the construction of ships, aircraft, and missile defense. At the same time, many states are beginning to understand the importance of reliable protection against cyber attacks, which is reflected in rising costs in this direction.
Balanced policy
Russia, in turn, pursues a balanced policy regarding the military budget, not allowing it to become excessively inflated, but at the same time not forgetting about key areas that are of decisive importance in the modern world.
According to the Ministry of Finance, in 2017 the item “National Defense” required 3.3% of GDP, but in 2018 the figure had already dropped to 2.8%. In 2019, the figure will drop to 2.7%, and by 2020 – to 2.5% of GDP.
Thanks to a competent approach to defense spending, the country can boast of a fully equipped, combat-ready and powerful army. US President Donald Trump, answering the question of whether he considers Russia an enemy, said that Moscow has a strong army, but the Russian economy is much smaller than China. If you want to learn more about the current situation of the Russian economy, we recommend reading the material “”.
To sum up, we can say that the country, having incomparably fewer capabilities, was able to demonstrate its strength and power to the world. Due to the current conditions, the country must constantly take measures to ensure its defense capability. Availability strong army will always be a strong deterrent for any enemy.
Leaders in expenses
The United States remains the unattainable leader in terms of defense spending. At the same time, the size of the military budget is only increasing every year. The country's closest pursuer is China, but China's spending is 4 times less than that of the United States. China itself tirelessly repeats that its military forces are absolutely defensive in nature and cannot pose a threat to other countries.
In terms of spending relative to GDP, Saudi Arabia leads the way, spending over 8% of its economy on defense. The country is actively increasing spending in last years. Regional conflicts are forcing it to take such a step.
Experts estimate global defense spending this year at $1.6 trillion. Compared to 2017, the amount jumped by 3.3%. Such growth rates have already been called the largest in the last 10 years. The total amount of global defense spending is the largest since the end of the Cold War. The latest surge in spending began in 2014 and is still ongoing.
Defense spending of countries around the world
| A country | Defense spending, dollars | Share of military budget in GDP |
|---|---|---|
| USA | 714 billion | 3,6% |
| China | 175 billion | 1,4% |
| India | 63.9 billion | 2,5% |
| Great Britain | 60 billion | 2,3% |
| Saudi Arabia | 56 billion | 8,2% |
| Japan | 46.1 billion | 0,9% |
| Russia | 46 billion | 2,8% |
| Germany | 44.8 billion | 1,24% |
| France | 40 billion | 1,5% |
| South Korea | 39.2 billion | 2,6% |
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According to a report by analysts at the consultancy Deloitte on the outlook for the defense and aerospace industry, the sector will show fairly strong growth in 2017 after several years of "positive but subdued growth." According to company experts, the sector's revenue this year will grow by 2%, with revenue in the aerospace industry growing by only 0.3%, and in the defense industry by 3.2%.
According to the report's authors, such growth in this industry is primarily due to the fact that the US defense budget will return to growth in 2017, given the "increasing focus of the new US government on strengthening the US military." According to Deloitte, this year the US defense budget will increase by $9 billion, to $589 billion; in 2016, it grew by $20 billion after five years of decline.
“Rising global tensions are leading to increased demand for weapons in the Middle East, in Eastern Europe, North Korea and in the East China and South China Sea region. This is driving up defense spending around the world, especially in the United States. United Arab Emirates(UAE), Saudi Arabia, South Korea, Japan, India, China and Russia - many of these countries have already increased purchases of new generation weapons,” the report says.
Russia's defense budget should grow by 7.5%, China - by 7.4%, Saudi Arabia - by 5.7%.
Deloitte cites the size of the military budgets of the top 25 countries for 2015 - the United States then spent $595.5 billion on defense needs. China was in second place ($214.5 billion in 2015), Russia was in third place ($91.1 billion). In fourth place was Saudi Arabia ($85.4 billion), in fifth place was France ($60.7 billion). In 2015, defense spending by all countries amounted to $1.76 trillion. 39.1% of all defense spending fell on the Northern and South America, with 34% in the USA and 25.6% in the countries of the Asia-Pacific region.
In December, IHS Jane’s Aerospace, Defense & Security published a report showing that in 2016, NATO countries increased defense spending for the first time in six years, thus responding to the rise of the Islamic State terrorist organization and deteriorating relations with Russia. Russia itself was not included in the top 5 for the first time since the 1990s; its defense spending last year dropped to $48.5 billion.