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Russia raises 2027 military spending by 27%, budget documents show
Russia plans to spend 17.1 trillion roubles ($202.58 billion) on defence in 2027, around 27% more than the 13.5 trillion roubles 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 defence spending will amount to 50 trillion roubles in the next three years, according to the documents. In 2026 the government planned to spend 12.1 trillion roubles on defence 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 roubles or 20.9% of GDP.
The government is expected to submit the draft budget to parliament by 1 October. 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 roubles annually.
The documents showed that in 2026 the government will increase its net borrowing plan by 26% to 5 trillion roubles and spend 459 billion roubles – 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 roubles from 8.9 trillion roubles 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 roubles.
Faced with Russia’s full-scale invasion of Ukraine and the broader security threat it represents, EU member states have sharply increased defence spending in what amounts to Europe’s largest rearmament since the Cold War. Combined annual defence budgets rose from €262 billion in 2022 to €418 billion in 2025 – a roughly 20 percent year-on-year jump and an increase of nearly 79 percent in real terms since 2020 – with a further rise to an estimated €454 billion expected in 2026.
Front-line states have led the way: Poland now spends well over 4 percent of GDP, the Baltic countries between 3 and 5 percent, and Germany has driven much of the regional growth after years of underinvestment. NATO allies have committed to a new 5 percent of GDP target by 2035 (3.5 percent on core defence), while the EU has launched initiatives such as ReArm Europe/Readiness 2030 to mobilise hundreds of billions in additional funding, joint procurement and industrial capacity so that Europe can deter further Russian aggression and reduce reliance on external partners.
With Reuters, with additional reporting by EUalive.
Caption: Russian President Vladimir Putin (rear, C) chairs a meeting of the Military-Industrial Commission at the Kremlin in Moscow, Russia,18 September 2026. EPA/VYACHESLAV PROKOFYEV/SPUTNIK/KREMLIN / POOL
