Russia to Raise 2027 Military Spending by 27%, Budget Documents Show

Russia intends to spend 17.1 trillion rubles, roughly $202.58 billion, on defense in 2027, according to government budget documents reviewed by Reuters. That marks an increase of about 27% over the originally planned 13.5 trillion rubles and represents the highest defense allocation since the full-scale war in Ukraine began in 2022.

The documents show total defense spending over the next three years will reach 50 trillion rubles. For 2026, the government had initially planned 12.1 trillion rubles in defense spending, but the actual figure has been classified and will not be made public. Some military expenditures may also be recorded elsewhere in the budget.

Deficit and debt forecasts also rise

The documents show the government has raised its projected 2026 budget deficit to 3.2% of GDP, up from a previous estimate of 1.6%. Total 2026 budget spending is set to grow by 13.2% to 48.6 trillion rubles, or 20.9% of GDP.

The draft budget is expected to be submitted to parliament by October 1. Last week the government announced new tax increases planned for 2027 to help cover the growing deficit, including a new windfall tax on metals and mining companies expected to generate about 200 billion rubles annually.

For 2026, the government plans to increase net borrowing by 26% to 5 trillion rubles and to draw 459 billion rubles — about 11% of the liquid portion of its National Wealth Fund — to help offset the deficit. It also lowered its 2026 oil and gas revenue estimate to 7.6 trillion rubles from a previous 8.9 trillion.

State debt is projected to climb to 21.7% of GDP in 2027 from 19.9% in 2026, exceeding the 20% threshold authorities consider safe. Total borrowing in 2027 is set to increase by 43% to 7.7 trillion rubles.