Russia to cut welfare, education funding in 2027 as war spending soars

Live updates

1. 2h ago

   Russia to cut social spending to fund 27% increase in 2027 military budget

   Russia will reduce funding for healthcare, education, and welfare in its 2027 state budget to offset rising military costs. Fiscal documents obtained by Reuters show the government plans to spend 17.1 trillion roubles ($202.58 billion) on defense, a 27% increase over the original 13.5 trillion roubles budget. This record spending level is the highest since the 2022 invasion of Ukraine. To cover the gap, the Kremlin is combining these spending cuts with previously announced tax hikes totaling $44 billion for citizens and businesses.

   Why it matters

   The shift reflects a transition toward a wartime economy as the conflict in Ukraine continues. By diverting funds from social services to the military, Moscow is prioritizing defense capabilities over domestic welfare. This fiscal strategy occurs as the government faces increasing pressure to sustain long-term war costs.

   What is confirmed

   • Russia plans to spend 17.1 trillion roubles on defense in 2027.
   • Military spending for 2027 is approximately 27% higher than the originally budgeted 13.5 trillion roubles.
   • The 2027 budget includes funding cuts for welfare, education, and healthcare.
   • Russia has implemented tax hikes for businesses and citizens totaling $44 billion.

   Still unconfirmed

   • Russia's economy has enough resources to avoid recession for two more years of war.
   • Denmark reports Russia is taking heavy losses with little gain.

   What to watch next

   • Official publication of the final 2027 state budget
   • Further announcements regarding specific tax rate increases
   • Changes in Russian social service delivery resulting from funding cuts
   Sources used for this update (25)

   1. Reuters — EXCLUSIVE: Russia raises 2027 military spending by 27%, budget documents show
   2. Bloomberg.com — Russia’s Military Spending Set to Surge by 27% as War Escalates
   3. UNITED24 Media — Russia Hits Citizens and Businesses With Record $44 Billion Tax Bill as War Costs Soar
   4. Reuters — Russia to cut welfare, education funding in 2027 as war spending soars
   5. The Times — How Putin is counting the cost of a war without an end
   6. finance.yahoo.com — Russia to cut welfare, education funding in 2027 as war spending soars
   7. The Moscow Times — Russia Has a Budget Problem. Borrowing Its Way Out Won't Be So Simple.
   8. defensenews.com — Russia raises 2027 military spending by 27%, budget documents show
   9. gardnermagazine.com — Deep Dive Episodes – Gardner Magazine – Gardner News Magazine: Local News & Articles in Gardner MA
   10. www.theguardian.com — Ukraine war briefing: Nato condemns Moscow’s ‘irresponsible ...
   11. Українська правда — Enough for two more years of war: Russia's economy just won't slip into recession
   12. Axios — Russia taking "heavy losses" with little gain, says Denmark
   confidence 95%