Russia to Boost Defense Spending to Record $202.6 Billion in 2027

Russia plans to significantly increase defense spending in 2027, allocating 17.1 trillion rubles (about $202.6 billion), a 27% rise from the initially planned amount, according to government documents cited by Reuters. This would mark the highest level since the full-scale war against Ukraine began in 2022. The Russian government has also revised its 2026 budget deficit forecast to 3.2% of GDP, up from 1.6%, with total spending set to rise 13.2% to 48.6 trillion rubles. To cover the shortfall, net borrowing will increase to 5 trillion rubles, and 459 billion rubles will be drawn from the National Welfare Fund. Over the next three years, Russia intends to spend about 50 trillion rubles on defense, with exact 2026 military expenditures classified. State debt is projected to reach 21.7% of GDP in 2027, and tax hikes, including a new levy on windfall profits of metals and mining companies, are planned to boost revenue.