JRL NEWSWATCH: “How much is Russia spending on its invasion of Ukraine? By historical standards, it’s a puny amount. That tells you three big things” – The Economist
“… Russia’s budget is murky — especially its military one. … However … consult[ing] … various experts[] … our own analysis … come[s] up with … 3% of GDP. … Three reasons explain why Russia is spending so little. The first is political. Many within the Russian government would like to continue to portray the war … as a ‘special military operation.’ … The second is economic. Russia would struggle to expand the war effort without costing its citizens dearly: printing money would spur inflation, eroding living standards; loading up banks with public debt might have a similar effect; tax rises or a big shift in public expenditure towards defence would also eat into personal incomes. This is a problem for … Putin, who has presidential elections in 2024. … [and] does not want … large demonstrations …. The third reason relates to defence economics more broadly. Today’s armed forces are far more efficient than the ones of the past. … need[ing] ever fewer people and … [utilizing more efficient] machines ….”