To Continue the War, the kremlin Will Be Saving on Children and the Sick

russia’s draft budget for 2027 projects a deficit of $66.1 billion, or 2.2% of GDP. At the same time, the government has classified $204.2 billion in expenditures – 34.9% of the budget. This is the largest share of classified expenditures in at least the last 12 years.

$205.4 billion – 35% of all expenditures – is allocated for the war. This is a record since the days of the soviet union. To fund military spending, the civilian budget will be cut by $10.8 billion. Social spending will be reduced by 7%, education – by 6%, healthcare – by 6.8%, and environmental protection – by 5.8%. In 2028, these expenditures will be cut by an additional $24 billion.

Funding for the federal cancer control program will drop from $539 million to $46.5 million in 2027 – a decrease of nearly 12 times in one year and 38 times compared to 2025, when $1.78 billion was allocated for it. Assistance for large families will be cut 3.2–fold – to $172 million.

There will still be money for children, however. Over $721 million will be spent annually on ideological indoctrination and military training.

Another $239 million in 2027 will go toward a system for blocking websites and VPNs. Approximately $721 million is earmarked for this over three years.

Spending on putin and his administration in 2027 will rise to nearly $442 million – by $43 million more than planned. The judicial system also wants more money: monthly allowances for “complexity and intensity” of work, amounting to up to 200% of base pay, will be introduced for judges and court employees.

The government will raise the additional funds from the public and businesses. In the first six regions, the maximum utility rate indices were raised above the planned level starting October 1. In kemerovo region – from 12% to 19.8%; in yakutia – from 15% to 18.9%; and in mari el – from 9.4% to 14.9%. In 2026–2029, the federal budget also aims to collect $20.4 billion in fines, sanctions, and compensation for damages – a plan that has been increased by one-third.

russia is even cutting payments to the families of those killed in the war against Ukraine. In ulyanovsk region, compensation was reduced from $12,000 to $6,000 in February, and in April – to $600. In kemerovo region, the payment was cut from $36,000 to $12,000; in omsk region – from $12,000 to $6,000; and in Bashkortostan – from $6,000 to $1,200. In saratov region, at the end of September, it was decreased tenfold – from $12,000 to $1,200.

The kremlin is also cutting funding for the reconstruction of the temporarily occupied territories in Donetsk, Luhansk, Zaporizhzhia, and Kherson regions. In 2027, approximately $43 million is planned to be allocated to this program, compared to $90 million in 2026 – a 52% decrease. In 2028–2029, $41.5 million per year is projected. Against the background of rampant corruption and the long-standing practice of embezzlement of budget funds by russian officials, the kremlin is effectively abandoning the reconstruction of the settlements that russia itself destroyed.