MOSCOW - Outgoing Russian President Dmitry Medvedev has vehemently defended plans to increase military spending as an "imperative" for national security.

Influential Finance Minister Alexei Kudrin, who resigned Monday, had challenged the plans.

He had said a proposed 1.3 per cent increase in military spending next year would greatly complicate efforts to balance the budget and keep previous social commitments.

Analysts said the spending hike was likely sanctioned by Prime Minister Vladimir Putin, who is widely considered more powerful than Medvedev and plans to return to the presidency next year.

Medvedev, who was watching military exercises in the Ural mountains, said in televised remarks Tuesday that an efficient army is Russia's obligation towards its citizens and neighbours.