MOSCOW, August 9 (RIA Novosti) - Russia will raise military spending by 70 billion rubles ($2.6 billion) in 2007, the finance minister said Wednesday.
"Defense spending will increase primarily to meet army equipment needs," Alexei Kudrin said during a meeting with President Vladimir Putin.
The 2006 defense budget allocated less than $20 billion for defense spending, a fraction of the Pentagon budget's of $447 billion. China plans to spend about $29.6 billion on defense this year.
Kudrin said the increase will also cover service pay, which will rise by 50%.
