Russia has enough budget funds to pay for its war, Finance Minister Siluanov says

Russia has sufficient budget funds to pay for its war in Ukraine, according to Finance Minister Anton Siluanov.

“The Finance Ministry provided all the funds required for the main tasks” of the military, Siluanov told reporters in a briefing Wednesday. “All the needs of our armed forces for their tasks in the special military operation are provided with money.”

Russia plans a massive increase in defense spending in 2024, to 10.8 trillion rubles ($112 billion) from 6.4 trillion rubles this year, overtaking outlays on social support even as President Vladimir Putin prepares to run for a fifth term in elections in March.

Higher than expected proceeds to Russia’s budget from non oil and gas sectors in 2023 allowed the government to spend more than was planned, according to Siluanov. That’s even as international sanctions including a price cap on oil sales were meant to drain the state’s coffers and increase pressure on the economy.

Russia’s overall budget spending exceeded the target by more than 3 trillion rubles at 32.2 trillion rubles, Siluanov said. While meeting the army’s needs in the war, the government didn’t cut spending on infrastructure, investment, and social services, he said.