Russia Plans Record 17.1 Trillion Rouble Defense Budget for 2027
The Government of Russia will increase 2027 defense spending by 27 percent to 17.1 trillion roubles, funded by new windfall taxes and increased borrowing.
The Government of Russia plans to spend 17.1 trillion roubles ($202.6 billion) on defense in 2027, marking a 27 percent increase over the original budget. This represents the highest spending level since the 2022 invasion of Ukraine, with total defense expenditures projected to reach 50 trillion roubles over the next three years.
To finance this growth and a budget deficit estimated at 3.2 percent of GDP for 2026, the government will implement new tax hikes in 2027. These measures include a windfall tax on metals and mining companies expected to generate 200 billion roubles annually.
Russia will also increase net borrowing by 26 percent to 5 trillion roubles in 2026 and draw 459 billion roubles from its National Wealth Fund. Consequently, state debt is projected to rise to 21.7 percent of GDP by 2027, surpassing the government's established 20 percent safety threshold.
