EXCLUSIVE: Russia raises 2027 military spending by 27%, budget documents show

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1. 2h ago

   Russia Increases 2027 Military Spending by 27% to 17.1 Trillion Rubles

   Russia plans to raise its military spending by 27% in 2027, reaching a record 17.1 trillion roubles or $178 billion to fund its war in Ukraine. Newly unveiled draft budget documents from the Finance Ministry reveal that the state is relying on fresh tax hikes on citizens and businesses, alongside windfall taxes from the mining and metals sector, to cover a mounting war deficit. To accommodate these surging defense expenditures, the government also intends to cut domestic funding for welfare, education, and healthcare.

   Why it matters

   The sharp defense escalation sets the largest Russian military budget since 2022, compounding fiscal strain and underlining the state's intent to sustain the ongoing conflict. Raising $44 billion through record tax bills shifts the domestic burden onto ordinary citizens and corporations as the war continues to drain national finances.

   What is confirmed

   • Russia plans to boost 2027 military spending by 27% to 17.1 trillion roubles.
   • The defense allocation reaches $178 billion, setting Russia's biggest military budget since 2022.
   • Russia plans to cut welfare, education, and healthcare funding in 2027 to cover the defense increase.
   • The Finance Ministry introduced fresh tax hikes and windfall taxes on mining and metals to fund the war deficit.

   What to watch next

   • Legislative votes and formal approval of the 2027 draft budget by the Russian parliament.
   • Further announcements regarding specific sector cuts in welfare and education funding.
   Sources used for this update (19)

   1. Financial Times — Russia raises taxes to fund its war in Ukraine
   2. The Moscow Times — Finance Ministry Unveils 2027 Budget Draft With Fresh Tax Hikes to Fund War Deficit
   3. Euronews.com — Russia's finance ministry raises taxes to bolster military budget
   4. www.newsweek.com — Correction policies and requests
   5. Reuters — EXCLUSIVE: Russia raises 2027 military spending by 27%, budget documents show
   6. tradingview.com — Russia sees $2.4 billion a year in windfall tax from mining and metals in 2027-2029 - documents
   7. UNITED24 Media — Raising $178 Billion for Defense, Russia Sets Its Biggest Military Budget Since 2022
   8. themoscowtimes.com — Russia Raises 2027 Military Spending by 27%, Budget Documents Show
   9. www.globalbankingandfinance.com — Exclusive-Russia raises 2027 military spending by 27%, budget ...
   10. Bloomberg.com — Russia’s Military Spending Set to Surge by 27% as War Escalates
   11. Kyiv Post — Russia Plans Record 17.1 Trillion-Ruble Defense Budget as War Costs Deepen Fiscal Strain
   12. UNITED24 Media — Russia Hits Citizens and Businesses With Record $44 Billion Tax Bill as War Costs Soar
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