Russia's 2027 draft budget prioritizes military spending, cuts social outlays

Russia's 2027 draft budget, to be adopted by the State Duma, shows minimal growth in revenues and expenditures, but the Kremlin has abandoned any pretense of reducing military spending, increasing its absolute value while cutting social spending again. The budget follows a pattern of deficits exceeding planned levels by about 4 trillion rubles in 2025 and 2026, suggesting similar fiscal slippage. This signals a continued prioritization of defense over social welfare, with implications for Russia's fiscal sustainability and domestic stability.