Government Raises 2027 Military Spending by 27%, Budget Documents Show

By Reuters Sep. 28, 2026 Russia plans to spend 17.1 trillion rubles ($202.58 billion) on defense in 2027, around 27% more than the 13.5 trillion rubles originally budgeted and the highest figure since the start of the war in Ukraine in 2022, government documents seen by Reuters showed on Monday. Total defense spending will amount to 50 trillion rubles in the next three years, according to the documents. In 2026 the government planned to spend 12.1 trillion rubles on defense but the actual amount is classified and will not be disclosed. Some military spending can also be accounted for in other parts of the budget. The documents also showed the government raised its estimate for its 2026 budget deficit to 3.2% of gross domestic product, from 1.6% of GDP previously. Budget spending in 2026 will increase by 13.2% to 48.6 trillion rubles or 20.9% of GDP. The government is expected to submit the draft budget to parliament by Oct. 1. Last week, it announced plans for new tax hikes in 2027 to finance the growing deficit. The documents showed that a new windfall tax on metals and mining companies was expected to raise about 200 billion rubles annually. The documents showed that in 2026 the government will increase its net borrowing plan by 26% to 5 trillion rubles and spend 459 billion rubles — about 11% of the liquid part of its National Wealth Fund — to reduce the deficit. It also cut the oil and gas revenue estimate for 2026 to 7.6 trillion rubles from 8.9 trillion rubles previously. The documents showed that state debt is set to rise to 21.7% of GDP in 2027 from 19.9% of GDP in 2026, above the 20% level seen by the authorities as safe. Total borrowing in 2027 will increase by 43% to 7.7 trillion rubles. Read more about: Defense , Ukraine war Sign up for our free weekly newsletter Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview Subscribers agree to the Privacy Policy We sent a confirmation to your email. Please confirm your subscription. A Message from The Moscow Times: Dear readers, We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent." These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia. We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help. Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact. By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us. Once Monthly Annual Continue Not ready to support today? Remind me later. × Remind me next month Remind me Thank you! Your reminder is set. We will send you one reminder email a month from now. For details on the personal data we collect and how it is used, please see our Privacy Policy. Read more Russia's Defense Manufacturing Boom Is Nearing Its Limit, Official Says Manufacturing, led by the defense-industrial complex, has been one of the main drivers of Russia's wartime economy. 3 Min read Pro-Ukrainian Hackers Target Russian Defense Contractors – Reuters The cyberespionage group used AI-generated documents as decoys. 1 Min read Russian Lawmakers Back Massive Military Spending Increase Parliamentarians in the State Duma voted to approve Russia's spending plans for 2024-26, including a 68% increase in military spending next year. 3 Min read Russia’s Tank Losses in Ukraine Surpass 2,000 – OSINT Report The real number of Russia’s tank losses could be up to 20% higher, analysts told The Moscow Times. 2 Min read