Russia Raises 2027 Defense Spending to Record $202.6 Billion

Russia plans to spend $202.58 billion on defense in 2027, a 27% increase over the initially planned budget, according to government documents reviewed by Reuters. This marks the highest level since the war in Ukraine began in 2022. The planned expenditure of 17.1 trillion rubles exceeds the original 13.5 trillion rubles, with total defense spending over the next three years projected at 50 trillion rubles. The government also raised its 2026 budget deficit forecast to 3.2% of GDP, up from 1.6%. Russia's 2026 budget expenditures will rise 13.2% to 48.6 trillion rubles. A new windfall tax on metallurgical and mining companies is expected to generate about 200 billion rubles annually. President Vladimir Putin recently signed a decree increasing the armed forces to 2,441,630 personnel.