According to the draft federal budget for 2009-2011, expenditure on national defense was supposed to increase in 2009 by 25.7% from 1.02 trillion rubles ($40 billion) to 1.28 trillion rubles ($51.3 billion), and would account for 14% of total budget spending.
"We are planning to allocate an additional 80 billion rubles to buy new weaponry and military equipment and to ensure the deployment of troops where we deem it necessary," Vladimir Putin said at a government meeting.
Putin said that a large share of the additional funds would be used to compensate for the losses suffered by Russia in its short military conflict with Georgia over South Ossetia in August.
"The compensation for these losses must be provided in line with new capabilities acquired by our defense industry," he said. "The events in the Caucasus clearly showed the importance of our work to strengthen the combat efficiency of Russia's Armed Forces."
Russia lost at least four aircraft, including a Tu-22M Backfire strategic bomber, and a number of armored vehicles, during the five-day military operation to 'bring Georgia to peace."
Russia has pledged to keep nearly 8,000 troops in South Ossetia and Abkhazia, which it has recognized as independent nations, for the foreseeable future.
