Forecasts by Russia’s Ministry of Economics indicate that defense spending in Russia could rise from its current level of 3.7 percent of GDP to as much as 5.5 percent by the year 2000. That forecast is reportedly predicated upon the ability of the government to collect sufficient tax revenues. The additional defense expenditures would go first to the defense research and development sector and to manufacturers of military hardware. (Nezavisimaya gazeta, November 6)
General Staff Slams Defense Reduction Plans.