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Russia Plans 27% Increase in Military Spending for 2027
Confirmed
In Short: The increase in military spending comes after President Volodymyr Zelensky warned that Russia has already begun additional troop mobilization.
Russia plans to allocate $202.58 billion, or 17.1 trillion rubles, for defense in 2027, marking a 27% increase over the initial budget planned for 2026 and the highest level since the start of its invasion of Ukraine in 2022.
The documents indicate total defense spending of approximately 50 trillion rubles over the next three years. Some military spending could be included under other budget categories.
Meanwhile, Moscow has raised its estimate for the 2026 budget deficit to 3.2% of GDP, up from 1.6% previously. Budget spending is expected to increase to 48.6 trillion rubles, while oil and gas revenues have been revised down to 7.6 trillion rubles.
To cover the deficit, Russia plans to increase net borrowing and use 459 billion rubles from the National Wealth Fund. State debt is estimated to reach 21.7% of GDP in 2027, above the 20% threshold considered safe by Russian authorities.
On Sept. 28, Russian President Vladimir Putin signed a decree expanding the nation's armed forces by 15,500 personnel, raising the total military headcount to 2,441,630. This is in addition to the roughly 400,000 people a year that Russia needs to recruit just to replenish its forces.
President Putin also stated that Russia is looking to 'increase the involvement of foreigners' in its armed forces. North Korea is preparing to deploy another 10,000 troops against Ukraine, in addition to the more than 8,000 military personnel currently stationed in Russia.
The additional mobilization was expected by experts following the victory of Putin's United Russia party in the nation's parliamentary elections on Sept. 28.
A new windfall tax on metals and mining companies is expected to raise about 200 billion rubles annually, helping to fund the increased military spending.
When asked what concerned them most, 50% of Ukrainians cited corruption, while 40% cited Russia’s mass missile and drone attacks.
The draft budget is expected to be submitted by the Russian government by October.
On the last day of his official visit to France, Pope Leo XIV called for concessions to create peace between Russia and Ukraine.
The 10-year US Treasury yield climbed to its highest level since 2007, surpassing 5%, amid rising inflation and oil prices.
What this adds
Russia's increased military spending is the highest since the start of its invasion of Ukraine in 2022.
The budget deficit for 2026 has increased from previous estimates.
North Korea's defense minister has been dismissed and demoted, according to state media.
Background
The 10-year US Treasury yield climbed to its highest level since 2007, surpassing 5%, amid rising inflation and oil prices.
Nigeria's military expenditure jumped 55 percent to $2.1 billion in 2025 as kidnappings increased by 66 percent.
What's confirmed
- Russia plans to allocate 17.1 trillion rubles, equivalent to $202.58 billion, for defense in 2027.
- The documents indicate total defense spending of approximately 50 trillion rubles over the next three years.
- Some military spending could be included under other budget categories.
- Meanwhile, Moscow has raised its estimate for the 2026 budget deficit to 3.2% of GDP, up from 1.6% previously.
- Budget spending is expected to increase to 48.6 trillion rubles, while oil and gas revenues have been revised down to 7.6 trillion rubles.
What's still developing
- The Kyiv Independent Live in London: October 2 Russia is planning to spend 17.1 trillion roubles ($202.58 billion) on its military in 2027, an increase of around 27% over the previously budgeted amount, Reuters reported on Sept. 28.
- Russia's budget deficit for 2026 also increased from previous estimates, reported Reuters.
- Financial documents showed that Russia's budget deficit in 2026 grew to 3.2% of its GDP, up from the 1.6% listed in estimates earlier this year.
- Moscow's plan to increase military spending comes after President Volodymyr Zelensky warned that Russia has already begun additional troop mobilization.
- No Kwang Chol was not only dismissed as defence minister but also demoted in the ruling party leadership to "first vice-director of the Munitions Industry Department", KCNA said. of North Korean Defense Minister No Kwang Chol (left) with Russia's Defense Minister Andrei Belousov at Pyongyang International Airport before the visiting defense minister's departure from North Korea on Nov 30, 2024. (Photo: Korean Central News Agency/Korea News Service via AP) SEOUL: North Korea's defence minister has been dismissed as part of a reshuffle of the country's military leadership, state media reported Sunday (Aug 30).
- U.S. President Donald Trump said Monday that Russia "has unfortunately lost control of its Diesel Oil Industry" due to its war with Ukraine, a day after pressing Ukrainian President Volodymyr Zelenskyy in a phone call to halt Kyiv's drone and missile strikes on Russian refineries.
- Trump pressed Ukrainian President Volodymyr Zelenskyy in a Sunday phone call to halt Kyiv's drone and missile strikes on Russian oil refineries, warning the attacks were worsening a global diesel shortage and driving up prices, the Financial Times (FT) reported, citing people familiar with the call.
- The U.S. president's main message was about "diesel, diesel... diesel," a senior Ukrainian official who was on the call told the FT, saying Trump repeatedly urged Zelenskyy to order his military to stop the attacks.