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Russia raises 2027 military spending by 27%, budget documents show
Defense News • • world
Key Points:
- Russia plans to allocate 17.1 trillion roubles ($202.6 billion) to defense spending in 2027, marking a 27% increase from the originally budgeted 13.5 trillion roubles and the highest defense budget since the Ukraine war began in 2022.
- Over the next three years, total defense expenditure is projected to reach 50 trillion roubles ($591.7 billion), with 2026 spending figures remaining classified and some military costs included in other budget areas.
- The government raised its 2026 budget deficit forecast to 3.2% of GDP from 1.6%, with overall budget spending expected to rise by 13.2% to 48.6 trillion roubles, or 20.9% of GDP.
- To address the growing deficit, Russia plans new tax hikes in 2027, including a windfall tax on metals and mining companies anticipated to generate about 200 billion roubles ($2.4 billion) annually.
- State debt is projected to increase to 21.7% of GDP in 2027 from 19.9% in 2026, surpassing the government's 20% safety threshold, with total borrowing rising 43% to 7.7 trillion roubles.
