Russia Increases Military Budget Amid Growing Deficit

• •Russia's military budget for 2027 is set to increase by 27% to 17.1 trillion rubles.
• •The budget deficit for 2026 is projected to reach 3.2% of GDP, up from earlier estimates.
• •President Putin has authorized an increase in military personnel to 2.44 million.

On September 28, 2026, Russia announced a 27% increase in its military budget for 2027, raising spending to 17.1 trillion rubles ($202.6 billion). This marks the highest military expenditure since the onset of the Ukraine invasion in 2022. Despite a widening budget deficit, projected to reach 3.2% of GDP, Russia plans to allocate a total of 50 trillion rubles ($591 billion) for defense over three years. The government is also expected to introduce new taxes to manage the deficit, including a windfall tax on metals and mining companies. Additionally, President Putin has authorized an increase in military personnel to 2.44 million, reflecting ongoing military mobilization efforts. The draft budget is set to be submitted to parliament by October 1, 2026, as the government grapples with falling oil and gas revenues.