Russia to Cut Welfare and Education Funding in 2027 as Military Spending Hits Record High

Russia will cut funding for welfare, education, and healthcare in its 2027 state budget to help cover soaring military spending, according to fiscal documents obtained by Reuters. Defence spending is planned at 17.1 trillion roubles, about 27% higher than originally budgeted and the highest since the war in Ukraine began. Social policy funding will shrink by 7%, education by 6%, and healthcare by 6.8% compared with the initial plan, while national economy spending, including infrastructure and agriculture subsidies, will drop by 7.4%. The budget situation has deteriorated over 4-1/2 years of war, forcing Russia to tap reserve funds, increase borrowing, and raise taxes. New tax hikes and a larger-than-expected increase in utility tariffs have angered even some Kremlin supporters, though the pro-Kremlin United Russia party is expected to approve the budget. Debt-servicing costs will rise by 21.6% in 2027, reaching 9.4% of total spending, and increasing further to 10.6% by 2029.