Russia intends to reduce funding for several civilian budget areas while simultaneously increasing defense spending. This is evidenced by documents obtained by Reuters. According to the budget draft, spending on social policy, including pension payments to war veterans and maternity benefits, will decrease by 7%. Funding for education will be cut by 6%, and healthcare by 6.8%. Spending on the "National Economy" category is also planned to be reduced by 7.4%. This includes the construction of roads and other infrastructure, as well as government support for agriculture and several sectors of the economy. At the same time, spending on servicing the national debt is increasing. In 2027, it will grow by 21.6% compared to the previous year and will account for 9.4% of total budget expenditures. According to the documents, this figure is expected to rise to 10.6% by 2029. In fact, the budget reflects a redistribution of state funds in favor of defense spending, while funding for several civilian areas is decreasing. As noted by the independent publication The Bell, another source of budget replenishment is expected to come from increased tax burdens. It is estimated that additional measures could bring around 1.5 trillion rubles (approximately 15.6 billion euros) to the treasury. Of this amount, 200 billion rubles (about 2.1 billion euros) is expected to come from a windfall tax on metallurgical companies. Another 500–700 billion rubles (approximately 5.2–7.3 billion euros), according to economist Dmitry Polevoy, could be generated by introducing progressive taxation on passive income — dividends, interest on bank deposits, and income from the sale of property. Additionally, other tax measures are being considered, including increasing the dividend tax, introducing a tax on the profits of investment funds, and extending the 22% VAT to purchases on foreign online trading platforms. Recently, Reuters reported that the budget for 2027 allocates 17.1 trillion rubles (178 billion euros) for military needs — a record amount and about 27% more than the initially planned 13.5 trillion rubles. According to the budget draft, total military spending over three years is expected to reach 50 trillion rubles (521 billion euros). However, it is impossible to determine the exact volume of defense spending, as some relevant items in the Russian budget remain classified and may be allocated to other sections. Thus, the budget draft for 2027 provides for further growth in military spending, accompanied by cuts in funding for several civilian sectors and the search for additional sources of income.
