http://in.reuters.com/article/worldNews/idINIndia-35502520080916

Tue Sep 16, 2008 7:11pm IST
MOSCOW (Reuters) - Russia's defence spending will grow by 27 percent in
2009, Interfax news agency quoted Prime Minister Vladimir Putin as saying on
Tuesday.

"Nearly 2.4 trillion roubles ($94.12 billion) will be allocated for the
needs of national defence and security (in 2009)," Interfax quoted Putin as
saying. "This is an increase of 27 percent."

In a brief war last month, Russia crushed an attempt by pro-Western
neighbour Georgia to retake South Ossetia, a breakaway region closely tied
to Moscow.

President Dmitry Medvedev and Putin have said the military operation,
condemned by the West as disproportionate, has shown the armed forces needed
a major modernisation of their weapons and hardware.

Putin made his announcement on the day when Russian stocks plunged more than
10 percent to two-year lows, driven by turmoil on international markets and
domestic concerns including the war in Georgia.