Russia plans record 17.1 trillion rouble defence budget for 2027
Government documents seen by Reuters show Russia plans to spend 17.1 trillion roubles on defence in 2027 — 27 per cent above the original budget and the most since the war in Ukraine began — while the 2026 deficit doubles to 3.2 per cent of GDP.
Russia plans to spend a record 17.1 trillion roubles ($202.58 billion) on defence in 2027 — around 27 per cent more than the 13.5 trillion roubles originally budgeted and the highest figure since the start of the war in Ukraine in 2022 — according to government documents seen by Reuters and reported on Monday.
The documents show total defence spending will amount to 50 trillion roubles over the next three years. For 2026, the government had planned to spend 12.1 trillion roubles on defence, but the actual amount is classified and will not be disclosed; some military spending can also be recorded under other parts of the budget.
The same documents raised the government’s estimate for its 2026 budget deficit to 3.2 per cent of gross domestic product, from 1.6 per cent previously. Budget spending in 2026 will increase by 13.2 per cent to 48.6 trillion roubles, or 20.9 per cent of GDP.
The government is expected to submit the draft budget to parliament by October 1. Last week it announced plans for new tax hikes in 2027 to finance the growing deficit, including a new windfall tax on metals and mining companies expected to raise about 200 billion roubles annually.
The documents showed the 2026 net borrowing plan raised by 26 per cent to 5 trillion roubles, with 459 billion roubles — about 11 per cent of the liquid part of the National Wealth Fund — to be spent to reduce the deficit. The oil and gas revenue estimate for 2026 was cut to 7.6 trillion roubles from 8.9 trillion roubles.
State debt is set to rise to 21.7 per cent of GDP in 2027 from 19.9 per cent in 2026, above the 20 per cent level the authorities consider safe. Total borrowing in 2027 will increase by 43 per cent to 7.7 trillion roubles.
Sources
- Reuters, “Russia raises 2027 military spending by 27%, budget documents show”, 28 September 2026 — https://www.reuters.com/world/russia-raises-2027-military-spending-by-27-budget-documents-show-2026-09-28/
- Kyiv Independent, “Russia to raise military spending by 27% in 2027, highest level in war so far, media reports”, 29 September 2026 — https://kyivindependent.com/russia-to-raise-military-spending-by-27-in-2027-highest-level-in-war-so-far-media-reports/
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