On September 28, Reuters, citing Russian government documents, reported that the country's total military spending over the next three years is projected to reach 50 trillion rubles (nearly 592 billion USD).

For 2027, Russia's defense budget is set at approximately 202,6 billion USD. This marks a 27% increase from the initial estimate of 159,8 billion USD, representing the highest level since the Ukraine conflict began in 2022.

Russia had previously planned to allocate over 143 billion USD for defense this year. However, the actual expenditure is classified and will not be disclosed, with some costs potentially accounted for under other budget categories.

For context, the United States' defense budget for fiscal year 2026 stands at 961,6 billion USD, with officials proposing an allocation of 1,5 trillion USD for the subsequent year. In May, China announced its defense spending for this year would be 276,9 billion USD.

The Reuters-accessed documents also indicate that the Russian government has revised its budget deficit forecast for this year to 3,2% of GDP, up from the initial estimate of 1,6%. Total expenditures are projected to increase to 575 billion USD, representing 20,9% of GDP.

The Russian government plans to submit the draft budget to parliament before October 1. Last weekend, Russian officials announced a plan to increase taxes next year to address the growing deficit. This measure targets the exceptional profits of mineral and metal mining companies and is expected to generate approximately 2,4 billion USD in revenue annually.

Nguyen Tien (Reuters, Moscow Times)