Russia plans to spend 17.1 trillion rubles on defense in 2027, about $202.58 billion, according to draft government budget documents reviewed by Reuters. It would be the largest annual military outlay since the full-scale war in Ukraine began in 2022.
The figure is roughly 27% above the 13.5 trillion rubles earlier planned for the year. Over the next three years, defense spending is projected to reach 50 trillion rubles. For 2026, Moscow had initially budgeted 12.1 trillion rubles, but the amount actually spent remains classified, and some military-related spending may sit under other sections of the budget.
The strain on the budget
The money has to come from somewhere, and the documents show the pressure. Russia has doubled its forecast for the 2026 deficit, from 1.6% of GDP to 3.2%. Overall government spending is expected to rise 13.2% to 48.6 trillion rubles, about 20.9% of GDP.
To cover the gap, net borrowing in 2026 is planned to climb 26% to 5 trillion rubles. The government also intends to draw 459 billion rubles from the National Wealth Fund, about 11% of its liquid portion. Meanwhile the forecast for 2026 oil and gas revenue has been cut to 7.6 trillion rubles from 8.9 trillion.
Debt is set to rise from 19.9% of GDP in 2026 to 21.7% in 2027. Borrowing in 2027 is projected to jump 43% to 7.7 trillion rubles, which pushes debt past the 20% level Russian authorities have previously described as a safe threshold.
A new tax on excess profits of metallurgical and mining companies is expected to bring in around 200 billion rubles a year, and officials have announced further tax measures for 2027. The draft three-year budget is due to go to the Russian parliament by October 1.
