The key facts

  • Defense and security will take 44% of the federal budget in 2027 — a record; war spending in 2026 reached 17 trillion rubles versus the planned 12.1 trillion.
  • Social policy spending will fall by 7% to 6.65 trillion rubles; healthcare over three years gets 28.6 trillion versus 50 trillion for military needs.
  • Regions are reallocating funds from social programs to military payments and cutting compensation to families of the killed — in some regions by dozens of times.

Record share of defense spending

The State Duma will begin consideration of the draft federal budget for 2027–2029 on October 22 (according to the Russian version of Euronews — October 29). The draft, submitted by the Finance Ministry immediately after the September parliamentary elections, names as its first priority 'fulfilling social obligations to citizens,' but the figures point to military spending as the main item. Defense and security — including national security, intelligence services, police and the Rosgvardia — will account for a record 44% of federal spending in 2027, twice as much as social policy. United Russia's absolute constitutional majority in the new Duma makes significant amendments unlikely. War spending in 2026 reached 17 trillion rubles (about €181 billion) against the originally planned 12.1 trillion (€129 billion) — 40% above plan.

Cuts to social spending

Social policy spending in 2027 will fall by 7% — from 7.1 trillion rubles (€76 billion) to 6.65 trillion (€71 billion). The item covers pensions, payments to combat veterans, maternity benefits and other support measures. The authorities promise indexation of payments against inflation, which, according to official data, exceeded 8% for most of the past two years; independent economists say the real level is higher. The Kremlin announced a 'children's budget' of 10 trillion rubles (€107 billion) over three years — for maternity capital, child benefits and housing programs — but its ratio to defense spending is one to five. Payments to servicemen and their families are classified and included in the 'National Defense' section, whose spending next year will grow by about a quarter.

Regions shift money from social programs to military needs

Part of military payments is financed by regions, many of which run deficits and are forced to cut civilian spending. At the end of September, the Arkhangelsk region redirected more than 63 million rubles intended for social support — two-thirds from the item on pay for foster parents, the rest from items aiding large families — to one-time payments to war participants and compensation to families of the killed. A few days earlier, the Tula region cut spending by 54 million rubles on foster children, the poor, families with disabled children, housing repairs for orphans and support for labor veterans, directing the sum to servicemen's allowances and compensation for the killed. In St. Petersburg, a law has been prepared to cut spending on education, transport repairs and medical projects while increasing payments to servicemen.

Reduction of 'coffin' payments

Since autumn 2025, regions have been cutting regional top-ups to families of those killed in the war — informally called 'coffin payments.' In 2022–2023, regions sharply raised them while competing for recruits. In the Ulyanovsk region, a payment of 1 million rubles (€10,700) was halved in February, then cut to 50 thousand rubles (€533). In Bashkortostan, the sum fell from 2 million rubles (€21,300) to no more than 100 thousand (€1,100). The Kirov and Omsk regions halved payments — from 1 million to 500 thousand rubles (€5,300); in the Kemerovo region — by a third, from 3 million to 1 million; in the Saratov region — from 1 million to a tenth. The payments attracted fraud: in the Primorsky region, an ensign was accused of arranging marriages between contract soldiers and local women to obtain compensation; in Khabarovsk in February, six suspects were detained in similar schemes involving notarized powers of attorney, with damages estimated at 2.4 million rubles (€25,600). Families of servicemen classified as missing in action or deserters, rather than killed, do not receive the one-time payment; relatives claim such formulations are used to withhold compensation.

Healthcare cuts

Healthcare will receive 7 trillion rubles (€75 billion) in 2027 — 6.8% less than a year earlier, according to calculations by independent Russian media, which the Finance Ministry disputes. Over three years, 28.6 trillion rubles (€305 billion) are allocated for healthcare versus 50 trillion (€533 billion) for military needs. Ambulance funding has been cut by more than a quarter, the program for building and repairing polyclinics has been halved; most national projects in the sector have been underfunded since September 1, 2026. The national project to fight cancer — one of the three leading causes of death in Russia alongside cardiovascular disease and diabetes — will be cut the most: in 2027 it will receive 3.9 billion rubles instead of 44.9 billion in the current year. The project includes the purchase of medicines for cancer patients, equipment for clinics and dispensaries, and prevention and diagnostics measures.