Russia hikes 2027 defense budget by 27% as Putin orders fourth troop expansion of the year - report
Russia reportedly plans to spend 17.1 trillion rubles, about $202.58 billion, on defense in 2027, a 27% increase from the originally budgeted amount, the highest figure since the war in Ukraine began
Russia's defense spending will reach 17.1 trillion rubles ($202.58 billion) in 2027, up from the 13.5 trillion rubles ($159.20 billion) originally budgeted, according to documents seen by Reuters. Total defense spending is projected to hit 50 trillion rubles ($589.65 billion) over the next three years.
The documents also showed Russia raised its 2026 budget deficit estimate to 3.2% of GDP from 1.6% previously, with total 2026 spending rising 13.2% to 48.6 trillion rubles ($573.14 billion), or 20.9% of GDP. The government plans to submit its draft budget to parliament by October 1 and has already announced new tax hikes for 2027.
The hikes will include a windfall tax on metals and mining companies expected to raise about 200 billion rubles ($2.36 billion) annually. State debt is projected to climb to 21.7% of GDP in 2027 from 19.9% in 2026, above the 20% threshold authorities consider safe.
The spending increase comes as Russian President Vladimir Putin signed a decree expanding the country's armed forces for the fourth time this year, adding 15,500 troops and bringing authorized military strength to 1,550,500 personnel within an overall force of close to 2.5 million. Putin did not state a reason for the decision, but it comes amid mounting Russian losses in Ukraine, where advances have slowed due to widespread drone use and recent Ukrainian breakthroughs on parts of the front.
The combined increase since March, when Putin signed the first of the four decrees, totals 47,860 soldiers.
Ukrainian President Volodymyr Zelensky took to X to comment on the decree, saying Russia "has already begun additional mobilization" and is expanding recruitment through multiple channels, including plans to bring in more foreign fighters. Zelensky said Kyiv has information indicating 8,000 North Korean troops are already in Russia, with plans to send 10,000 more.
Russia is currently estimated to recruit about 30,000 new personnel each month. Politico reported in late August that roughly 100,000 Russians fled to Georgia within a single week due to fears of conscription.