Russia plans 17.1 trillion roubles in 2027 defence spending

  • Russia cut planned 2027 welfare, education, healthcare and infrastructure funding to finance defence.
  • Russia plans 17.1 trillion roubles in 2027 defence spending, 27% above the original allocation.
  • Russia projects debt-servicing costs at 9.4% of total spending in 2027.

Russia plans to spend 17.1 trillion roubles ($202.58 billion) on defence in 2027, 27% above its original 13.5 trillion-rouble allocation and the highest amount since the start of the war in Ukraine in 2022. The revised budget plan cuts 2027 funding for social policy by 7%, education by 6%, healthcare by 6.8% and the national economy section by 7.4% from initial plans, as Moscow redirects resources toward military spending. Russia has also announced tax increases, including a planned windfall tax on metals and mining companies expected to raise about 200 billion roubles annually, while higher utility tariffs are planned for next year following this month's parliamentary election. Debt-servicing costs are projected to rise 21.6% from the initial 2027 plan, reaching 9.4% of total spending before increasing to 10.6% in 2029. The new State Duma, where United Russia will hold a constitutional majority, is expected to approve the budget.

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