Russia to run budget deficits for three years running, totaling nearly 16 trillion rubles
Russia's government has submitted a 2027–2029 draft budget to the State Duma projecting annual deficits of around 2% of GDP, with spending priorities centered on social welfare and defense.
Russia's government has submitted a draft federal budget for 2027–2029 to the State Duma. Prime Minister Mikhail Mishustin signed the order, according to the TASS news agency.
The draft projects a deficit of 5.5 trillion rubles in 2027, 5.1 trillion in 2028, and 5.3 trillion in 2029. Each of these shortfalls amounts to roughly 2% of GDP, adding up to nearly 16 trillion rubles over the three-year period.
Priorities and spending
The government lists its budget priorities as fulfilling social welfare obligations, supporting participants in the so-called "special military operation," meeting defense and security needs, developing health care and education, and securing technological leadership. According to the outlet The Bell, the government's press release does not mention any plans to cut social spending or raise military spending.
Russia's Finance Ministry had already submitted the draft budget to the government on September 24. It proposed a higher tax rate on passive income along with a 22% value-added tax on goods bought through cross-border e-commerce.
Reuters, which reviewed the document, reported that the 2027 budget calls for record military spending of 17.1 trillion rubles.
