They started in the 90s and slowed down to stand-still by the lack of money nearly. The Russians dump nothing payed for already. By that we find elements from the former MFI in several Flanker variants. But technology is advancing and most of that can not be fitted into a new design like the PAK-FA any longer. To achieve a demanded level of system-integration all the related software has to be written new, tested and certificated in the end. All serious readers are aware about the related cost and time to achieve that level. Whenever the T-50 will enter its first frontline service in some years from now it will be limited to basic A2A similar the Rafale F1 f.e. with several further years ahead to reach later levels about that similar to the Rafale before to use a better known example about that. All the delays of the F-22/F-35 were/are still software related. A further serious setback from such a high level of system-integration is the software is affected by every change of some critical hardware too. The faulty oxygen-system of the F-22A is a prominent example about that.

I dont think there was stand still. after all Su-47 test example first flight in 1997. and Sukhoi has plenty of upfront money by selling licenses to China/India with plenty of system integration experiance from Su-30.
Rafale is no good example. Rafale despite using newer electronic scanning radar dont have real advantage over older radar systems of M2k-9/EF. Thats why every one wants AESA in Rafale.
Su-35 have nearly identical cockpit like T-50 with similar TVC systems.
There is no such continuity from F-16E to JSF or M2K to Rafale.
Su-35 systems and radars are sufficiently advanced to use all the long range weopons effectively. T-50 will certainly exceed Su-35 performance/electronic systems. It wont be like Rafale going in reverse.
Pilot transitioning from Su-35 to T-50 will not have that much big difference so more faster operational inductions.

Just for the ones who have blind faith in present Russian claims. The PAK-FA has still several years to go for weapon-integration like we learned about the present Su-35 f.e.

I would not think Su-35 is less challenging programe.
once you increase internal fuel capacity to 11.5 tons in relatively small airframe with TVC not chubbier like stealth fighter the stresses will already at loaded stealth fighter.
even if they start at zero in 2014 for weopon integration. the long range verstile weopons early adoption is itself advantage.
when will be Norway NSM trials start with F-35 and that does not have comparable range.

While the M2 might have a better fuel fraction, be a bit lighter and sport another pair of pylons, I don’t think there is a viable difference between MiG-29UPG and MiG-29M1/M2 in terms of electronics. The UPG is basically an SMT phase II which served as a base for the Malaysian MRCA project (albeit in the new airframe) and later became M2 – radar and mission computers are identical for all mentioned.

MIG-29UPG dont have RD-33MK and soon MKM engines. and wing area is smaller than larger wing from MIG-29K. FBW system in M is new.

Nothing has changed, so the cost will rise ?

Cost already rose from 11 Rafales for Euro 1 billion to 4 for Euro 500million.

I think the 200 Flanker plan was never realistic, and financially impossible.

http://lenta.ru/news/2012/08/09/su/

Apparently funds are going towards transport aircraft, which are in terrible shape.

It becomes even more unrealistic when Knaapo basically stop production of Su-27SK/Su-30MK. It is like LM selling F-16A.
Su-35 will be alot more expensive and not available for export long time.

No the debt will increase not just of military spending but spending in other sectors of infrastructures like Oil & Gas , Space , Airports infra etc etc

Spending already going up. and there is no deficit in 2012 untill this point. we debated this issue couple of months back. your predictions are wrong. You cannot properly interpret predictions.
both consumption tax and flat income tax depends on wage growth. as long as high quality skilled population is produced with wage increase faster than rest of the world. there is no way Tax revenue is going to go down.
As i said the scale of GDP is much larger. and it is clear from salaries and construction spending.

http://www.independent.ie/business/irish/russian-cheer-for-irish-builders-3182626.html

Thats bound to happen there is always the ever presence sword of Oil Price hanging over Budget and consequently debt , if Oil price fall below $80 in the coming years then it will be a serious problem.

oil at $80? time will come when Russia is going to sell water at this price.I will leave the end result of 770b arms spending to your imagination.

deploying to North and West.
http://www.reuters.com/article/2012/08/02/us-iraq-russia-arms-idUSBRE87111X20120802

Where does your link say any thing on new attack submarine and Putin never said any thing of that sort.

The new small 5th gen SSN will only come after 2020 not earlier.

So 16 Multipurpose submarine will either be 8x 885M and 8 x 971M or 16 885M , we might come to know in few days weeks about it

It is new constructing boats. not modernization of old boats. they have already signed for 5 885. so it is probable they are going to sign for improvement of the same in future.

Thats possible but i still doubt SAP is all procurement budget it part of over all defence budget , may be the defence budget includes Salary , Maintenance but the capital funding which is procurement and R&D comes from SAP , thats possible.

Thats very much doubtful that we would see a $300 b defence budget in this decade

SAP dont include salaries. once you increase contract servicemen from 186000 to 425000. training, salaries, healthcare, housing, pension budget will go above $50b. In the second link you can get wage growth.

http://www.diplonews.com/feeds/free/30_May_2012_229.php

http://www.cbonds.info/cis/eng/news/index.phtml/params/id/584371