Russia's 2027 Draft Budget Shifts Money to Defense, Raises Taxes and Cuts Social Spending
The draft 2027 budget earmarks 17.1 trillion rubles for defense - a record share of federal spending - while trimming civilian programs and introducing new taxes to fund the war.
The draft federal budget for 2027 proposes a defense allocation of 17.1 trillion rubles, 26% higher than the previous draft and far above pre-war levels, making defense about a third of all spending. To finance the growing deficit, the state plans to increase borrowing to 6.1 trillion rubles and raise taxes for the third year in a row, adding a 22% VAT on purchases from foreign online retailers and raising rates on dividends, interest and property sales.
Civilian spending will be reduced, with cuts of 5.5% to health, 5.4% to education and 6% to social programs, and specific projects like Long and Active Life and the federal cancer program facing steep reductions. Debt-service costs are projected to reach 4.6 trillion rubles in 2027, while the Central Bank keeps interest rates high to curb inflation. Economists note that while Russia still has a fiscal cushion, the combination of higher military outlays and limited revenue-raising capacity could pressure the economy and the Central Bank’s policy stance.
Why it matters
The budget shows how Russia will finance its prolonged war, shifting the fiscal burden onto citizens and the economy.
How the sides frame it
LOW AGREEMENTLeft-leaning coverage presents the draft budget as a set of fiscal figures—defense spending, tax hikes, and cuts to civilian programs—while centrist coverage frames the same budget as evidence that Putin is gearing up for a prolonged war in Ukraine.
LEFT
Left-leaning coverage treats the budget primarily as a financial plan, detailing allocations and tax changes without overt judgment.
CENTER
Centrist coverage portrays the budget as a strategic move to sustain a long-term conflict, highlighting record war spending and Putin’s preparation for years of fighting.
The left emphasises
- defense allocation of 17.1 trillion rubles, 26% higher than the previous draft
- tax increases including a 22% VAT on foreign online purchases
- cuts to health (5.5%), education (5.4%) and social programs (6%)
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