Russia shifts funds from social sector to defence
Russia’s draft 2027 budget provides for record defence spending and less money for social provision.
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Russia plans to spend 17.1 trillion roubles on defence in 2027, 27 per cent more than previously budgeted. At the same time, leaked budget documents reportedly show planned spending on social programmes, education and healthcare being reduced.
The figures come from documents reviewed by Reuters. They concern the draft federal budget for 2027, not a final, adopted budget. The Russian government has since submitted a multi-year budget to the State Duma.
The planned defence spending of 17.1 trillion roubles is, according to Reuters, the highest amount since the start of the full-scale invasion of Ukraine in 2022. The figure is about 27 per cent above the previously established estimate of 13.5 trillion roubles.
The budget shows how heavily the war weighs on Moscow’s financial priorities. Alongside defence, other security spending outside the Ministry of Defence is also being increased. This makes it difficult to determine the total cost of the war precisely from public budget items.
The shift comes with pressure on other policy areas. Reuters reports that the planned amounts for social provision, education and healthcare are lower than in earlier plans. Interest costs are also rising: according to the documents consulted, debt-servicing costs in 2027 will increase by 21.6 per cent compared with the previous plan.
The Russian government also presented a substantial deficit for 2026. According to The Moscow Times, it amounts to 7.345 trillion roubles, nearly double an earlier estimate. The rising expenditure is being financed in part through additional borrowing and previously announced tax increases.
The budget is not yet final and spending can change during parliamentary consideration. Some military items are also secret or spread across different chapters. The documents therefore mainly provide insight into the government’s policy choice, not all actual war expenditure.
One story, several perspectives
What is established
- This concerns a draft of Russia’s federal budget for 2027.
- Planned defence spending is increasing compared with earlier estimates.
- Planned amounts for several civilian policy areas are falling compared with earlier plans.
- According to the documents consulted, Russia’s budget deficit and interest costs are increasing.
Left
Arguments The war is being prioritised over public provision. An increase in defence spending while education, healthcare and social programmes come under pressure is seen as a political choice that makes citizens pay the price.
Values Social equality, public provision and protecting households are central.
Consequences Foreseeable consequences include less room for healthcare and education, greater regional disparities and a heavier burden on vulnerable groups.
Centre
Arguments A government must fund security, but also demonstrate that the budget remains sustainable and subject to scrutiny. The institutional question is chiefly whether the State Duma can adequately assess the assumptions, secret items and social consequences.
Values Budgetary discipline, administrative oversight and continuity of public services.
Consequences A compromise could consist of temporary defence spending with clearer funding, more transparent reporting and protection for essential social programmes.
Right
Arguments Russia is engaged in a prolonged security conflict and must therefore allocate sufficient resources to defence and strategic autonomy. Under this approach, social spending can be adjusted temporarily as long as national security is under threat.
Values National security, sovereignty and resilience against foreign pressure.
Consequences The emphasis on defence may strengthen military capability and domestic industry, but it also increases economic dependence on the war and pressure on citizens.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
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The key figures are based on budget documents reviewed by Reuters and independent reporting on the submission of the draft. The final budget and some military items remain uncertain.
- confirmed Russia is planning 17.1 trillion roubles in defence spending for 2027. — Reuters reports this based on Russian budget documents. source
- confirmed Planned defence spending is 27 per cent above an earlier estimate of 13.5 trillion roubles. — This is stated in Reuters’ reporting. source
- confirmed Under the new plans, social programmes, education and healthcare will receive less money than previously provided for. — Reuters describes these reductions in the draft budget. source
- confirmed The Russian government has submitted a multi-year budget to the State Duma. — The Moscow Times reported on the submission of the draft. source
- confirmed The budget deficit for 2026 is estimated at 7.345 trillion roubles. — This figure is cited by The Moscow Times. source
- uncertain Russia’s full war expenditure can be inferred from public budget items. — According to the reporting, military spending may be distributed across multiple or secret items; the article therefore does not make this claim. source
Editor's note
The figures from the draft and the submission of the multi-year budget are certain. The final amounts and the scale of secret or dispersed military spending remain uncertain.Sources
- Russia to cut welfare, education funding in 2027 as war spending soars — Reuters via MarketScreener
- Government Submits 3-Year Budget to State Duma — The Moscow Times
More on this in Dutch media
- AD — „rusland begroting”
- de Volkskrant — „rusland begroting”
- RTL Nieuws — „rusland begroting”