Russia's 2027 Draft Budget Boosts Military Spending to $200 Billion, Cuts Public Programs

Russia's draft budget for 2027 allocates over $200 billion to its armed forces, signaling no planned end to the war in Ukraine, according to a New York Times report. The increase comes amid rising state debt, tax hikes, and cuts to public programs. Military spending will rise by more than a quarter compared to this year's budget, accounting for over one-third of all planned government expenditures. The plan reduces funding for social benefits, healthcare, education, and medical infrastructure, with the deficit exceeding $60 billion. Russia borrows mainly domestically due to sanctions, with state banks playing a key role and bond interest rates above 15 percent. The Kremlin is raising taxes on small businesses, deposits, dividends, and asset sales, while Ukrainian attacks on oil installations have reduced revenue from energy exports. Ukraine faces even harsher conditions, with its prime minister implementing maximum savings and deferring all non-essential spending.