Russia Plans Record $202.6 Billion Military Spending for 2027

Russia plans record military spending of 17.1 trillion rubles ($202.6 billion) for 2027, a 27% increase from the initially planned 13.5 trillion rubles and the highest since the full-scale invasion of Ukraine began, according to Russian government documents reviewed by Reuters. Total Russian war expenditures over the next three years are projected to reach about 50 trillion rubles ($590 billion). The documents also reveal a worsening budget balance, with the expected 2026 federal deficit revised to 3.2% of GDP from a previous estimate of 1.6%. Overall budget spending next year is set to rise 13.2% to 48.6 trillion rubles ($573 billion), while Moscow lowered its 2026 oil and gas revenue forecast to 7.6 trillion rubles ($89.68 billion) from 8.8 trillion. Government debt is projected to reach 21.7% of GDP in 2027, exceeding the 20% level previously deemed safe. To cover the growing deficit, authorities plan to increase the tax burden in 2027, including a new levy on metallurgical and mining companies expected to yield about 200 billion rubles ($2.36 billion). Ukrainian and Western intelligence report Kremlin plans for additional mobilization, with Ukraine's military intelligence saying Russia aims to recruit 300,000 troops this year and 300,000 next year. President Volodymyr Zelensky stated on September 28 that Russia is preparing to bring in an additional 10,000 North Korean soldiers.