Russia Slashes Social Spending to Fund Record Military Budget

Russia plans to cut social spending by seven percent in 2027 while increasing military expenditures to 17.1 trillion rubles, the highest level since the war in Ukraine began. The budget documents show cuts of six percent for education and 6.8 percent for health compared to original plans. Russia also doubled its 2026 deficit forecast to 3.2 percent of GDP and plans tax increases on metal and mining companies. NATO Secretary General Mark Rutte said Russia's aggressive posture will not deter the alliance from supporting Ukraine, stating NATO will do more, not less, for Kyiv. The budget draft goes to parliament by October 1.