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Bringingup (R&D + equipment and materiel acquisition) / personnel subsistence ratio from the current 30%:70% to 40%:60%

Bringingup (R&D + equipment and materiel acquisition) / personnel subsistence ratiofrom 40%:60 % to 50%:50 %

Plan ofactions to shape the future layout of the Russian military organization asplanned for by the RF Security Council on 27 September 2000

Defenseplanning for the Russian armed forces,planning for other forces, military unitsand institutions

Transitionto the three-force structure in the Russian armed forces (the Army, the AirForce and the Navy) + services (airborne troops, strategic missile forces,space troops etc.)

For theArmy:

- restore the General Headquarters of theArmy;

- retain, in each of the strategic sectors, units anddetachments in permanent readiness;

- improve the recruitment of forces(services);

- establish the combined Volga-Urals Military Command

Streamlinethe system of personnel training and military education

Formulation and implementation of a single technical policy in thearmed forced and government. Establishment of a unified purchasing agency

Establishment of a unified military R&D complex

Implementation of a unified system of administrative support inthe armed forces, other forces, military units and institutions

Socialsecurity program in defense planning in Russia until 2010

Increasedsalaries for active army

Increasedsalaries for reserve

Increasedmoney allowance for servicemen above the salaries of federal civil servants

Program for social adaptationof servicemen retiring from the military service, and their families

Analysis of militaryexpenditure in the Federal Budget of Russia

The data from the 2001 federal budget arepresented in the survey structured around recipients of the budget monies,which include, firstly, components of the military organization in the RussianFederation (Ministry of Defense and its subordinate armed forces, and othertroops, military units and institutions); secondly, non-military ministries.

The tables below show the structurallyaggregated data and assessments of general expenditure, and also (for theMinistry of Defense) some information about the allocation of the appropriatedfunds. Apart from strictly military expenditures, included are also thoserelating to the past military activities of the country. Some of those, e.g.,pensions to former servicemen and their families, although they may not qualifyas military expenditures, are nevertheless handled, when budgeted, by thefinancial authorities of the military organization.

Table 42

Defense and related expenditure in Russiain 2001

No	Title ofexpenditure	Amount, in Rbs. mln	% federal budget expenditure	% GDP
1	Expenditures of military organization as part of the nationaldefense expenditures
Overall national defense expenditures, including:		214 688	18,0	2,77
1.1	Defense planning andmaintenance in the armed forces of the Russian Federation	203 061	17,0	2,62
1.2	Support to preparednessactivity and military training for civilians	2 278	0,19	0,03
1.3	Preparation for andparticipation in collective security and peacekeeping	2 716	0,23	0,04
2	Expenditures of the military organization as part of the lawenforcement and national security expenditures
Overall law enforcement and national security expenditures,including:		131 621	11,0	1,70
2.1	Border services andborder guards troops	11 943	1.00	0,15
2.2	Internal security troopssubordinate to the RF Ministry of Interior	10157	0,85	0,13
2.3	State security agencies*	21191	1,78	0,27
3	Other expenditures of the military organization
3.1	Maintenance and equipment of theEmergency Command (Emercom) troops	12455	1,04	0,16
3.2	Federal service of railroad troops	1882	0,16	0.02

Table 42 (cont’d)

No	Title ofexpenditure	Amount, in Rbs. mln	% federal budget expenditure	% GDP
3.3	Federal service ofspecial construction	502	0,04
4	Additional expenditures on national defense, law enforcement andnational security
4.1	Expenditures underArticle 79 of the 2001 Federal Budget allocated to the RF Ministry of Defenseand used as financial support to the activities of the Russian armed forces**	unknown
4.2	Expenditures under Article 78 of the2001 Federal Budget allocated to the Ministry of Interior and Emercom to beused for the logistical support and social welfare of servicemen ***	unknown

Notes:

* Tentatively, the amount in line 2.3 maybe inclusive of the outlays for the Federal Security Service, ForeignIntelligence Service and some other agencies responsible for the security ofthe state in Russia.

** These items are funded through therevenues of the institutions subordinate to the Russian Ministry of Defense andfinanced subject to their budgeting estimate, that are generated undervoluntary service contracts, for the sales of arms, military equipment andmateriel from the stocks of the RF Ministry of Defense under technical militarycooperation, for military personnel training in the interests of foreignstates, and through other revenue-generating activities allowed under theRussian legislation.

*** these items are funded through therevenues from the sales of arms and defense equipment, and other movableproperty under technical military cooperation, military personnel training inthe interests of foreign state, and contractual services rendered by theMinistry of Interior and Emergency Command.

Additionally note that earlier, expendituresunder item 4 were not mentioned in the budget and were, as a result,>

Table43

Military expenditures outside the militaryorganization

No	Title of expenditure	Amount, in Rbs. mln	% federal budget expenditure	% GDP
From the sectionУNational DefenseФ (item 1 of Table 2)
4.1	Defense program of theMinistry of Nuclear Energy	6330	0,53	0,08
4.2	Supportingindustries’contribution towards national defense	303	0,03
4.3	Russian defense andtechnical sports organization (ROSTO)	33	-	-
From other budgetary sections and subsections
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