Associated Press – 2008-09-23 20:33:08

http://ap.google.com/article/ALeqM5hE_-OiPRaNN8o4Pov7KcF87YZtgwD939NMDO0

MOSCOW (September 19, 2008) — Russian lawmakers discussed a draft 2009 budget Friday that calls for a 25 percent hike in defense spending — a sharp increase for Russia’s military that comes only a month after it crushed Georgia on the battlefield.

The boost in defense spending also fits in with Russia’s recent defiant posture toward the West, a stance that has seen relations with the United States and the European Union sink to a post-Cold War low after last month’s war in Georgia.

The draft 2009 budget envisages defense spending rising from 1,016.7 billion ($40 billion) rubles this year to 1,277.5 billion rubles ($50 billion) next year, a 25.7 percent increase.

Under a three-year budget plan, Russian military spending will increase yearly, reaching 1,390.7 billion rubles ($54.5 billion) in 2010 and 1,480.5 billion rubles ($58 billion) in 2011.

Former President Vladimir Putin has moved to reaffirm Russia’s global clout and rebuild the armed forces during his eight-year tenure. His protege and successor as president, Dmitry Medvedev, has pledged to continue modernizing Russia’s arsenal — a task he said became even more acute after the five-day war in August with Georgia.

Russian forces quickly routed the Georgian military and pushed deep into Georgia, but military analysts said the fighting also underlined the weaknesses of the Russian military, such as the shortage of precision weapons and the lack of satellite navigation.

Windfall oil revenues have allowed the Kremlin to steadily increase defense spending over the past eight years, but the Russian military spending is still dwarfed by the Pentagon’s budget of $480 billion this year.

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