Russia plans record defense spending of $202 billion by 2027

Russia plans to allocate a record 17.1 trillion rubles ($202.58 billion) for defense in 2027, a 27% increase over initially planned spending and the largest amount since the war in Ukraine began, according to Reuters. Total defense spending over the next three years will reach 50 trillion rubles ($592.33 billion). The 2026 defense budget was set at 12.1 trillion rubles ($143.35 billion), though actual spending is classified. Russia's 2026 federal deficit forecast was raised to 3.2% of GDP from 1.6%, with total budget spending rising 13.2% to approximately $575.2 billion. To fund the growing deficit, Moscow plans new taxes on metals and mining companies, increased borrowing, and withdrawals from its national wealth fund. Russia's state debt is projected to reach 21.7% of GDP in 2027, exceeding the government's own 20% safety threshold.