Record Russian Defense Budget
Russia plans a 27% increase in 2027 defense spending amid rising fiscal pressures.
Anonymous
Russia’s proposed 2027 budget would raise defense spending to 17.1 trillion rubles, 27% above the previously budgeted amount and the highest level since its full-scale invasion of Ukraine began. Defense spending over the next three years is projected to total 50 trillion rubles. The increase comes amid growing fiscal pressure: the government raised its 2026 deficit forecast to 3.2% of GDP and lowered its forecast for oil and gas revenue. A planned tax on metals and mining companies is expected to raise about 200 billion rubles a year, a small share of the additional military spending, while borrowing is projected to climb to 7.7 trillion rubles in 2027 and public debt to 21.7% of GDP. The government is expected to submit the draft budget to parliament by October 1.
Key Points
1
The 3.6 trillion-ruble increase in planned 2027 defense spending is 18 times the roughly 200 billion rubles in annual revenue expected from the new metals and mining tax.
2
The draft 2027 budget projects total spending of 48.8 trillion rubles against revenue of 43.3 trillion rubles, leaving a deficit equivalent to 2.2% of GDP.
3
The projected 2027 public-debt ratio of 21.7% of GDP would exceed 20%, a level Russian authorities have previously described as economically safe.
4
Finance Minister Anton Siluanov said on September 21 that higher expenditures had emerged during budget execution and that the government would increase borrowing to cover them; the revised 2026 deficit estimate is slightly above the roughly 3% level he had cited publicly.
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