
The Kremlin's draft budget for 2027, presented to the State Duma on Tuesday, will make defense the largest single line item—surpassing the combined totals for health, education and social welfare.
The defense envelope is pegged at 17.1 trillion rubles, up 26% from last year's projection, and will account for more than a third of all state outlays.
In contrast, the budget trims healthcare and education by over five percent each, while the federal anti‑cancer program is set to lose roughly 97% of its original funding; social programmes will also shrink by 6%.
To cover the shortfall, the government plans higher taxes on bank deposits and property sales, and the 2027 deficit is projected at 5.4 trillion rubles—more than 70% above last year's forecast—pushing debt above 20% of GDP and borrowing 43% higher than planned.
Finance Minister Anton Siluanov called the cuts a priority, while senior fellow Alexander Kolyandr warned that the published figures are a starting point and actual spending could rise further; the State Duma is slated to vote on the bill next month.