Russia funnels nearly half its budget into defence, cutting social spending
Russia’s 2027 draft budget allocates a record share to defence and security, as regions quietly divert funds for foster children and orphans to war payments and “coffin money” for soldiers’ families is cut by up to 95% in some areas.
Russia's parliament is set to vote on a budget that allocates a record 44% of federal spending to defence and security, with social programmes receiving only 56% of the budget. This shift comes as the Kremlin continues its all-out war in Ukraine, with military expenditure reaching 17 trillion roubles (€181 billion) this year, surpassing the original budget of 12.1 trillion roubles (€129 billion).
While the government has pledged to index social payments against inflation, the real inflation rate remains high, and independent economists estimate it to be higher. The Kremlin has also announced a 10 trillion rouble (€107 billion) children's budget over the next three years, but the ratio of these funds to defence spending is one to five.
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