In Brief
- Russia's 2027 draft budget allocates a record 17.1 trillion rubles ($203 billion) to defense, a 27% increase over previous projections.
- Funding for education will drop by 6%, healthcare by 6.8%, and social welfare programs by 7%.
- Military expenditures will account for roughly one-third of total federal spending, reaching a post-Soviet high.
The Russian government has submitted its draft federal budget for 2027–2029 to the State Duma, prioritizing military requirements over social sector spending as the financial burden of the war in Ukraine grows. Defense spending is set to rise to a post-Soviet record of 17.1 trillion rubles (approximately $203 billion), marking a 27% increase from earlier estimates and accounting for roughly one-third of all federal expenditures.
To offset the escalating military costs, the Kremlin has reduced planned allocations for public infrastructure and social sectors. Education funding will be cut by 6%, healthcare spending by 6.8%, and social policy—including state pensions and maternity benefits—by 7%. Financial analysts note that despite implementing tax hikes and accessing fiscal reserves, rising debt service costs and sustained defense commitments are placing unprecedented structural strain on Russia's civilian economy.
