Russia to cut welfare, education funding in 2027 as war spending soars

Russia plans to reduce welfare, education, and healthcare funding in the upcoming budget year, as military spending continues to surge, according to recently obtained fiscal documents. The country projects to allocate 17.1 trillion roubles ($202.58 billion) towards defense in 2027, a 27% increase from the originally budgeted 13.5 trillion roubles, marking the highest defense expenditure since the war in Ukraine began in 2022.

Welfare funding will decrease by 7%, education funding by 6%, and healthcare funding by 6.8% compared to initial plans.

The 2027 budget also includes steep tax hikes and substantial increases in utility tariffs, which have sparked discontent among even some Kremlin supporters. The Russian government, prioritizing the war effort over other needs, is expected to pass the revised budget. Debt-servicing costs are anticipated to rise by 21.6% in 2027, reaching 9.4% of total spending, and further increasing to 10.6% in 2029 due to high interest rates and intensified borrowing.