Russia plans to reduce spending on education, welfare and healthcare in 2027 as the government increases defence expenditure amid continued fiscal pressure, according to documents related to the country’s draft state budget.
Russia’s planned defence spending is set to reach 17.1 trillion roubles ($202.58 billion) in 2027, about 27% higher than the 13.5 trillion roubles initially budgeted. The figure would represent the highest annual defence allocation since the Russia-Ukraine war began in 2022.
The draft budget shows funding for social policy is expected to decline by 7% in 2027 compared with the initial plan. This category includes state pensions, payments to war veterans and maternity benefits.
Education funding is projected to fall by 6%, while healthcare spending is expected to decline by 6.8% compared with earlier plans. Spending under the national economy category, which includes infrastructure projects and agricultural subsidies, is also expected to decrease by 7.4%.
The changes come as Russia faces increasing fiscal pressures after years of elevated military expenditure. The government has relied on its fiscal reserves, higher borrowing and tax increases to manage the budget.
The 2027 draft budget also includes additional tax measures and higher planned borrowing. Debt-servicing costs are projected to rise by 21.6% compared with the initial plan, reaching 9.4% of total spending in 2027.
The federal figures do not include regional and municipal budgets, which account for a significant portion of social spending.
