Re-industrialization of the Russian Economyand the Development of Military-industrial complex

The article analyzes the effectiveness of the budget spending on the develop-ment of military-industrial complex in Russia. The authors assess the impact of re-industrialization policy on the competitiveness of the Russian economy. The research methodology is in the frames of the structural analysis. The Russian defense industry is investigated, basing on the statistics of the federal budget expenditures on national defense, as well as the expertise of government weapons programs. The authors conclude that the implementation of re-industrialization policy will support inefficient industries and sectors instead of eliminating the effect of factors that hinder economic development.