Russia raises 2027 military spending 27% to $202.6 billion

September 28, 2026 at 11:07 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Russia plans to spend 17.1 trillion roubles, or $202.6 billion, on defense in 2027, a 27% increase over the originally budgeted 13.5 trillion roubles. Total defense spending over the next three years will reach 50 trillion roubles, or $591.7 billion. The government also raised its 2026 budget deficit estimate to 3.2% of GDP from 1.6%.

Key Facts

Russia's 2027 defense budget is set at 17.1 trillion roubles, or $202.6 billion, a 27% increase over the originally planned 13.5 trillion roubles.
Total defense spending for 2025-2027 will amount to 50 trillion roubles, or $591.7 billion.
The government raised its 2026 budget deficit estimate to 3.2% of GDP, up from 1.6%.
A new windfall tax on metals and mining companies is expected to raise about 200 billion roubles, or $2.4 billion, annually.
State debt is projected to rise to 21.7% of GDP in 2027, exceeding the 20% level authorities consider safe.

Defense Budget Increase

Russia plans to spend 17.1 trillion roubles, or $202.6 billion, on defense in 2027, a 27% increase over the originally budgeted 13.5 trillion roubles. The figure is the highest since the start of the war in Ukraine in 2022, according to government documents seen by Reuters. Total defense spending over the next three years will reach 50 trillion roubles, or $591.7 billion. In 2026, the government planned to spend 12.1 trillion roubles on defense, but the actual amount is classified and will not be disclosed.

Budget Deficit and Financing

The government raised its estimate for the 2026 budget deficit to 3.2% of gross domestic product, up from 1.6% of GDP previously. Budget spending in 2026 will increase by 13.2% to 48.6 trillion roubles, or 20.9% of GDP. The government is expected to submit the draft budget to parliament by Oct. 1. Last week, it announced plans for new tax hikes in 2027 to finance the growing deficit. A new windfall tax on metals and mining companies is expected to raise about 200 billion roubles, or $2.4 billion, annually.

Debt and Revenue Outlook

In 2026, the government will increase its net borrowing plan by 26% to 5 trillion roubles. It will spend 459 billion roubles, about 11% of the liquid part of its National Wealth Fund, to reduce the deficit. The oil and gas revenue estimate for 2026 was cut to 7.6 trillion roubles from 8.9 trillion roubles previously. State debt is set to rise to 21.7% of GDP in 2027 from 19.9% of GDP in 2026, above the 20% level seen by authorities as safe. Total borrowing in 2027 will increase by 43% to 7.7 trillion roubles.