Reuters: Russia is budgeting a record 17.1 trillion rubles for the military in 2027, while cutting planned spending on welfare, education, and healthcare
Russia will cut funding for social programs, education, and healthcare in its 2027 budget compared with last year’s plan to help cover rising military spending, Reuters reported after reviewing documents.
Russia plans to allocate a record budget of 17.1 trillion rubles for its military in 2027, while simultaneously reducing funding for welfare, education, and healthcare programs, according to documents reviewed by Reuters. The "social policy" category, encompassing pensions, combat veteran payments, and maternity benefits, will see a 7% decrease.
Education spending will drop by 6%, and healthcare spending by 6.8%. Meanwhile, spending in the "national economy" category, including infrastructure projects and subsidies, will fall by 7.4%. Debt servicing costs for 2027 are projected to rise by 21.6% compared to the previous year's plan, reaching 9.4% of the total budget by 2027, and potentially reaching 10.6% in 2029.
To offset the increased military spending, Russia is considering tax reforms. These measures include a tax on metallurgical excess profits, a progressive income tax on passive income, a 15% tax on mutual funds' profits, and a 22% VAT on foreign online purchases. These tax measures are expected to generate around 1.5 trillion rubles, with additional contributions from other tax adjustments.
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