Additional defense spending will be 1.5% GDP from 2012 - Kudrin
KRASNOYARSK. Feb 18 (Interfax) - Starting from 2012 additional federal budget spending for army modernization, military pay and defense industry will be 1.5% of GDP, said Russia's Deputy Prime Minister and Finance Minister Alexei Kudrin.
"As of next year three tasks - army modernization, improving military pay and defense industry - will pull 1.5% GDP of spending previously unavailable," he said at an economic forum in Krasnoyarsk.
In his address to the Federal Assembly the Russian president spoke of the need to modernize the army and a 20 trillion spending for these purposes, Kudrin recalled. He also announced plans to raise military pay.
Substantial army modernization also requires to develop the defense industry. "We need substantial resources which so far stand at around 0.5% GDP per annum additionally for the defense industry development," Kudrin added.
