Russia will reduce funding for welfare, education, and healthcare in its state budget for 2027, focusing more on military spending. Planned defense expenditures will rise to 17.1 trillion roubles ($202.58 billion), which is about 27% more than the previous budget. Funding for social policies, such as pensions and veterans’ payments, will decrease by 7%, while education and healthcare budgets will drop by 6% and 6.8%, respectively. Spending on infrastructure and agriculture will also decline by 7.4%.
The country’s budget situation has worsened during the nearly five years of war in Ukraine, leading to the use of fiscal reserves, increased borrowing, and tax hikes to manage military costs. Although Russia aims to establish a three-year budget for better planning, it has consistently had to adjust its financial figures upwards and has failed to meet deficit targets.
Tax increases and rising utility tariffs have upset some supporters of the Kremlin. Despite the reduced budget for non-military areas, costs associated with debt servicing are expected to grow significantly, reaching 9.4% of total spending in 2027 and continuing to rise.
With information from Reuters
