RN gets hit hard by the cuts?

[ikalugin]

Jim, he's a Russian, tell him you'll be launching 10 new carriers next week

That would make me jelous

[ikalugin]

Wait, RN got rid of the T42s already? And only has 6 destroyers? Are there any more T45s planned or is that it? What is this madness?
If only

I looked at his thread regarding the resurgence of the Russian Navy and find it interesting....the question that immediately springs to mind is 'Where is the money coming from considering the predicament Russia finds itself in economically and what sacrifices will be made to find the funding?'

Well, I would answer your question here. The Russian budget is build around the Budget rule (3 rules actually), which leads to the "essential" spending articles (ie defense spending) to be balanced against the reliable incomes (ie from internal, non foreighn trade related taxes). This means that with the budget squeese we would cut social spending and not defense spending, which would be ~5 percent of GDP this year (not counting industrial programs).

The other thing is that while the external, foreigh curency incomes did decrease (with oil prices going down), due to the free fall of Ruble, the income in Rubles stayed the same, thus the actual real decrease of the budget's income was not critical.

General economics wise World Bank for example expects small GDP growth next year.
http://www.worldbank.org/en/news/pre...-2015-and-2016
Sanctions (and low oil prices) are not killing the Russian economy as some may have expected. Morever, before Ukrainian events, Russian GDP PPP was around the same as German one and significantly ahead of the UK/France (3.5t vs 2.5t USD).

Defense spending is split into the day to day things, the rearmament programs and into the industry programs (ie retooling of critical defense industries). The rearmament programs are:
- GPV2015. This is the rearmament program 2007-2015, and by now is more or less complete for obvious reasons.
- GPV2020. This is the ongoing rearmament program 2011-2020, the program has ~20 trillion Rubles allocated to it, around 5 of which is allocated for the Navy. 5t Rubles is ~100-166b USD depending on the exchange rate. The GPV2020 is the main rearmament program, from which we get the cool new toys.
- GPV2025. This was the proposed rearmament program for 2016-2025, with proposed allocation of ~50 trillion Rubles to it. Sadly it is dead.
- PVK2050. This is the shipbuilding program 2014-2050, insufficient data is availiable about it apart from general 600 ship target.