Overview
- The government submitted the three‑year draft federal budget this week that revises the 2026 deficit to about 7.345 trillion rubles and puts defense spending at 17.1 trillion rubles for 2027.
- The draft makes defense roughly a third of federal outlays and raises the published 2027 military allocation by about 26–27 percent from prior plans to a post‑Soviet nominal high.
- To pay for higher war costs the budget boosts planned borrowing to about 6.1 trillion rubles in 2027 and projects debt‑service costs near 4.6 trillion rubles, increasing pressure on interest payments.
- The Finance Ministry pairs cuts to healthcare education and social programs with new tax measures and shows nearly 471 billion rubles in 'voluntary' receipts from wealthy individuals in 2026.
- A large share of spending remains classified with independent outlets estimating about 35 percent of outlays hidden and analysts warning that expanding military spending this way will strain finances and may exhaust revenue options; the State Duma begins review with a first reading set for Oct. 29.