Russia to cut spending in real terms but boost defence

Russia's proposed 2027 federal budget allocates 17.1 trillion rubles, approximately $202.6 billion, to national defense, or about 35 percent of total spending. Submitted to the State Duma on September 30, the draft anticipates overall nominal expenditure growth of just 0.5 percent against projected inflation of roughly 6.3 percent, implying a real-terms contraction. UK Defence Intelligence assesses that the defense allocation is 40 percent above the original 2026 plan, although expected overspending this year substantially reduces the year-on-year comparison. Planned education, healthcare and social-policy budgets are also expected to fall in nominal terms, while the figures remain subject to legislative approval.