Russia’s 2026 deficit nearly doubles to a record $88 billion, and its new budget plans three more years in the red
The draft sent to the Duma still gives the military its biggest budget since the full-scale invasion began.
The Russian government has submitted a draft federal budget for 2027-2029, revealing that Russia's expenditures will outpace its revenues in all three years. The country's economic struggles since its invasion of Ukraine have led to a record deficit of 7.345 trillion rubles ($88 billion) this year. To finance the war, the Kremlin has exhausted reserves, accumulated debt, and imposed higher taxes on citizens and businesses.
The budget prioritizes social obligations and defense needs, but details of planned cuts to social spending and increased military spending were omitted. Spending is projected to exceed revenue by about 2% of GDP annually. The government anticipates deficits of 5.1 trillion rubles ($61 billion) in 2028 and 5.3 trillion ($64 billion) in 2029, also amounting to 2% of GDP each year.
To address the gap, Moscow plans to implement tax hikes for 2027-2029 to support military spending. Defense spending is expected to reach its peak at 17.1 trillion rubles ($202.58 billion) in 2027, a 27% increase compared to the initial 13.5 trillion rubles ($151.8 billion) projected.
Written by urgent.news from Euromaidan Press's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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