During the plenary session of Russia’s prominent St Petersburg International Economic Forum, President Vladimir Putin commended the soundness of Russia’s public finances and justified the need for increased defense expenditure to enhance national security amid what Moscow refers to as a “special military operation” in Ukraine.
Putin stated that the public finances remained generally balanced, attributing the $42-billion budget deficit recorded this year mostly to the acceleration of certain planned expenses. Nevertheless, analysts and data indicate that declining energy revenues and surging military spending have significantly contributed to this situation.
According to Putin, the additional funds were necessary to fortify defense capabilities and security measures, as well as to procure weapons. He emphasized that such measures were compelled by the imperative to safeguard the sovereignty of the country.
Putin further added that, overall, this decision is economically justified.
