According to a report by Reuters on September 28, a Russian government document indicates that Russia plans to allocate 17.1 trillion rubles (approximately 1.37 trillion yuan) for defense spending in 2027. This represents an increase of about 27% compared to the initial budget of 13.5 trillion rubles, making it the highest figure since the Russo-Ukrainian conflict in 2022.
The document shows that the total defense expenditure will reach 50 trillion rubles in the next three years.
The Russian government plans to invest 12.1 trillion rubles in defense efforts in 2026, but the actual amount is confidential and will not be disclosed. Some of the military expenditures may also be included in other parts of the budget.
The document also shows that the Russian government has raised its forecast for the budget deficit to 2026 from 1.6% to 3.2% of GDP. Budget expenditures in 2026 will increase by 13.2%, reaching 48.6 trillion rubles, which accounts for 20.9% of GDP.
The Russian government expects to submit the budget draft to the parliament by October 1st.
Last week, the Russian government announced plans to increase taxes in 2027 in order to cover the growing fiscal deficit. According to the document, a new high-profit tax for metal and mining companies is expected to generate approximately 200 billion rubles in revenue each year.
In addition, the Russian government has downgraded its forecast for oil and gas revenues in 2026 from the previous amount of 8.9 trillion rubles to 7.6 trillion rubles.
