Russia will increase military expenses by debt and taxes - British intelligence

According to analysts, the corresponding policy of the Russian Government is likely to have a negative impact on the economy in the medium -term and long term through support of inflation pressure or restraining future economic growth. It is unlikely that the planned target indicator of the income of the Russian Federation for 2024 will be achieved as laid in the budget plan. This may require the Government to consider other political measures to fund planned expenditures.

This is stated in the Intelligence Record of the UK Ministry of Defense of February 5. According to analysts, the enemy government has "ambitious plans" to increase expenditures by 26% in 2024. This is based on optimistic income growths by 22%, and it is expected that oil and gas revenues will increase by almost 25%.

According to the British intelligence report, the Russian government will probably have to reduce their contributions to the National Welfare Fund, but to increase internal taxes and debt to finance the planned expenses. "This policy will almost probably have a negative impact on the economy in the medium -term and long run by supporting inflation pressure or restraining future economic growth," the statement said.