Russia's Problematic Defense Spending

Russia's Finance Ministry has proposed a $125 billion cut in federal spending through 2020 — mainly in the defense sector. The Finance Ministry is concerned about a series of problems that could seriously affect Russia's finances, so it wants to start slashing the budget. This cut is in stark contrast to Russian President Vladimir Putin's proposal in March to increase the Russian defense budget by $120 billion (to $770 billion total through 2020). The Russian defense sector faces many problems, all of which require cash. So, like many states, Russia has to make a choice between a robust defense sector or financial stability.