Russia to Raise Defence Spending to Record 202 Billion Dollars in 2027

Russia plans to allocate 17.1 trillion roubles, equivalent to about $202.58 billion, for defence spending in 2027, marking a 27 per cent increase from the previously budgeted amount and the highest level since the start of the war in Ukraine, according to government documents reviewed by Reuters.

The revised allocation is significantly higher than the original plan of 13.5 trillion roubles. Total defence spending over the next three years is projected to reach around 50 trillion roubles.

Actual military expenditure for 2026 remains classified, although some defence-related costs may be recorded under other budget headings.

The documents also indicate growing pressure on Russia’s public finances. The government has raised its forecast for the 2026 budget deficit to 3.2 per cent of gross domestic product, up from an earlier estimate of 1.6 per cent. Overall government spending is expected to rise by 13.2 per cent to 48.6 trillion roubles.

The Russian government plans to submit the draft budget to parliament by October 1. Officials have also indicated plans for tax increases, including a new windfall levy on metals and mining companies, to help finance the increased spending.

Russia’s state debt is projected to rise to 21.7 per cent of GDP by 2027, exceeding the level previously regarded by Russian authorities as a safe threshold.