Russia Plans Sharp Rise in 2027 Defense Spending as Budget Pressures Grow
Reuters-reviewed documents show Russia plans to boost 2027 defense spending to 17.1 trillion roubles, or $202.6 billion, a 27% rise from 13.5 trillion.
RUSSIA,ECONOMY
Global N Press
9/28/20261 min read
MOSCOW, September 28, 2026 — Russia plans to raise defense spending to 17.1 trillion roubles ($202.6 billion) in 2027, a 27% increase from the 13.5 trillion roubles previously budgeted, according to government documents reviewed by Reuters. The planned figure would be the highest annual defense allocation since the start of the war in Ukraine in 2022, with total defense spending projected at about 50 trillion roubles over 2027-2029. At the same time, Russia has raised its forecast for the 2026 federal budget deficit to 3.2% of gross domestic product, compared with an earlier target of 1.6%. Total government spending this year is expected to rise 13.2% to 48.6 trillion roubles, or 20.9% of GDP.
To finance the larger deficit, the government plans to increase net borrowing to 5 trillion roubles and use about 459 billion roubles from the National Wealth Fund. The government has also lowered its 2026 estimate for oil and gas revenues to 7.6 trillion roubles from 8.9 trillion previously. For 2027, Russia plans additional tax measures, including a windfall tax on metals and mining companies expected to raise about 200 billion roubles annually. Government documents indicate that state debt could reach 21.7% of GDP in 2027, up from 19.9% in 2026. The draft budget is expected to be submitted to parliament by October 1.
