Russia’s 2027 draft budget would direct a record 44% of federal spending towards defence and security, while funding for social policy and healthcare is set to decline. The proposals underline how the war in Ukraine is reshaping Russia’s public finances, with regional authorities also diverting money from vulnerable groups to military payments.
The figures, reported in the latest EU news and wider Europe news coverage, concern a draft rather than an adopted budget. Russia’s State Duma is expected to begin examining the 2027–2029 plan on 22 October, with final changes still possible before approval.
Russia’s defence bill reaches a record share
The draft allocates nearly half of federal expenditure to defence and security. That is approximately twice the planned share for social programmes and represents the highest proportion recorded in the available budget figures.
Military spending has already risen sharply during 2026. Expenditure is reported to have reached 17 trillion roubles, compared with an initial allocation of 12.1 trillion. The increase reflects the continuing financial cost of Russia’s full-scale invasion of Ukraine, which began in February 2022.
The defence section also includes payments to servicemen and their families. Spending under that heading is expected to increase by roughly a quarter next year, even as other forms of public support face reductions.
Social policy spending is projected to fall
The Finance Ministry describes meeting social obligations as the draft budget’s top priority. However, the proposed figures show a 7% decline in social policy spending, from 7.1 trillion roubles to 6.65 trillion.
The category covers several major areas of household support, including:
- Pensions and veteran payments
- Maternity benefits and child support
- Assistance for low-income households
- Support for families with disabilities
- Other social protection measures
The government has said payments will be indexed to inflation. Russia’s official inflation rate has remained above 8% for much of the past two years, although independent economists have estimated that the actual cost pressures faced by households may be higher.
Moscow has also announced a 10 trillion rouble “children’s budget” covering maternity payments, child benefits and housing programmes over three years. Based on the figures cited in the draft, that amount is around one-fifth of planned military spending over the same period.
Regions redirect money intended for vulnerable groups
Pressure is not limited to the federal budget. Regional governments are also financing war-related payments, and some are moving funds away from civilian programmes as local finances come under strain.
In the Arkhangelsk region, more than 63 million roubles earmarked for social support was reportedly redirected towards one-off war payments and compensation following soldiers’ deaths. The original funding included money for foster parents and large families.
The Tula region also transferred 54 million roubles away from support for foster children, low-income families, households with disabled children, housing repairs for orphans and labour veterans. The money was assigned to servicemen’s payments and compensation for those killed.
Officials in St Petersburg have prepared a bill that would reduce spending on education, transport repairs and medical projects while increasing payments linked to military service.
Regional death compensation has been reduced
Regional lump-sum payments to families of soldiers killed in action have been cut in several parts of Russia since autumn 2025. These payments supplement federal compensation and were increased substantially in 2022 and 2023, when regions competed to attract military recruits.
The reductions reported in the source material include:
- Ulyanovsk: from 1 million roubles to 50,000 roubles
- Bashkortostan: from 2 million roubles to no more than 100,000 roubles
- Kirov and Omsk: from 1 million to 500,000 roubles
- Kemerovo: from 3 million to 1 million roubles
- Saratov: from 1 million to 100,000 roubles
The payments have also been associated with allegations of fraud. Investigators in Primorsky Krai and Khabarovsk have examined alleged arrangements involving contract soldiers, marriages and access to compensation. These are allegations under investigation, not established findings against all people involved.
Families of soldiers classified as missing or deserters may also be excluded from death payments because the military has not confirmed that the person died in action. Relatives have alleged that such classifications can prevent compensation, but the claims require careful distinction from confirmed official findings.
Healthcare faces cuts in the draft plan
Healthcare funding is also projected to decline. Independent Russian media calculations cited in the report estimate a 6.8% reduction next year, although the Finance Ministry disputes that interpretation.
The three-year figures show a substantial gap between military and healthcare allocations: healthcare would receive 28.6 trillion roubles, compared with 50 trillion for the military.
Several healthcare programmes are reportedly affected:
- Ambulance funding would fall by more than a quarter.
- Funding for building and repairing regional outpatient clinics would be halved.
- The national cancer programme would receive 3.9 billion roubles in 2027, compared with 44.9 billion in the current year.
Because the budget remains a draft, the precise figures and programme allocations may change during parliamentary consideration.
What happens next?
The State Duma is due to start reviewing the 2027–2029 budget on 22 October. President Vladimir Putin’s United Russia party holds an absolute constitutional majority following September’s parliamentary elections, meaning major amendments may be less likely, although the legislative process is not complete.
This is a Russian national budget decision, not an EU measure. Its wider European significance lies in the scale of resources being directed towards Russia’s war effort and the potential consequences for the country’s economy, public services and military policy. For Ireland and other EU member states, the figures provide context for ongoing European security, sanctions and Ukraine policy discussions, but they do not directly alter Irish law or public spending.
Conclusion
Russia’s 2027 draft budget would place defence and security at the centre of national spending, while reducing planned allocations for social policy and several healthcare programmes. The proposal still requires parliamentary examination, but the balance of spending already signals the continuing domestic cost of the war in Ukraine. This development is an important part of European news updates because it shows how Russia’s military priorities are affecting families, regional governments and essential public services.
