MOSCOW — Russia plans to spend 17.1 trillion rubles (about $202.58 billion) on defense in 2027, according to draft government budget documents reviewed by Reuters.
The figure is about 27% higher than the 13.5 trillion rubles previously planned and would be Russia's highest annual defense spending since the start of the full-scale war in Ukraine in 2022. Total defense spending over the next three years is projected at 50 trillion rubles.
For 2026, Russia had initially budgeted 12.1 trillion rubles for defense, but the actual amount remains classified. Some military-related spending may also be included under other sections of the budget.
Deficit and borrowing increase
Russia has raised its forecast for the 2026 budget deficit to 3.2% of GDP, double the previous estimate of 1.6%. Overall government spending is expected to rise 13.2% to 48.6 trillion rubles, equal to about 20.9% of GDP.
To cover the deficit, net borrowing in 2026 is planned to increase 26% to 5 trillion rubles. The government also plans to withdraw 459 billion rubles from the National Wealth Fund, about 11% of its liquid portion.
At the same time, the forecast for 2026 oil and gas revenue has been reduced to 7.6 trillion rubles, from 8.9 trillion rubles previously.
Debt and new taxes
Russia's state debt is expected to rise from 19.9% of GDP in 2026 to 21.7% in 2027. Total borrowing in 2027 is projected to increase 43% to 7.7 trillion rubles, taking debt above the 20% level previously described by Russian authorities as a safe threshold.
A new tax on excess profits of metallurgical and mining companies is expected to raise around 200 billion rubles annually. The government has also announced additional tax measures for 2027 to help finance the deficit.
The draft three-year budget is due to be submitted to the Russian parliament by October 1. The figures are based on Russian government documents reviewed by Reuters and accounts from secondary outlets that examined the same material.
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