Russia is preparing to significantly increase military spending next year, with defense expenditures expected to reach 17.1 trillion rubles, approximately $202.58 billion. That would represent a 27% increase over the amount initially allocated for 2027 and mark the highest level of defense spending since the war in Ukraine began.

According to government documents reviewed by Reuters, Russia’s planned defense spending for 2027 is substantially higher than the 13.5 trillion rubles, or $159.20 billion, originally budgeted. Across the three-year period, defense expenditures are projected to total approximately 50 trillion rubles ($589.65 billion).

The documents also indicate that Russia has sharply revised its expectations for the 2026 budget deficit. The deficit is now projected at 3.2% of GDP, compared with an earlier estimate of 1.6%. Overall government spending this year is expected to increase 13.2%, reaching 48.6 trillion rubles ($573.14 billion), equivalent to 20.9% of GDP. Moscow is expected to present its draft 2027 budget to parliament by October 1, while additional tax increases have already been announced for next year.

Among the planned tax measures is a windfall levy targeting companies in the metals and mining sectors. The measure is expected to generate roughly 200 billion rubles, or $2.36 billion, each year. Meanwhile, Russia’s state debt is forecast to rise from 19.9% of GDP in 2026 to 21.7% in 2027, exceeding the 20% level that Russian authorities have traditionally viewed as a safe threshold.

The increased defense allocation comes as President Vladimir Putin has ordered another expansion of Russia’s armed forces. A decree signed by Putin increases the authorized military force by 15,500 personnel, bringing the official military strength to 1,550,500 troops. The broader Russian military structure is estimated at nearly 2.5 million personnel.

Putin did not publicly provide a reason for the latest increase. It comes, however, as Russian forces continue to suffer substantial casualties in Ukraine and battlefield advances have slowed. Extensive Ukrainian drone operations and recent Ukrainian gains in several areas of the front have added further pressure on Russian forces.

Since March, when Putin approved the first of four military expansion decrees this year, the combined increase in authorized personnel has reached 47,860 troops.

Ukrainian President Volodymyr Zelensky commented on the latest decree on X, claiming that Russia “has already begun additional mobilization” and is using several recruitment methods, including efforts to attract additional foreign fighters. Zelensky also said Ukrainian authorities have information indicating that 8,000 North Korean troops are currently in Russia, with another 10,000 expected to arrive.

Russia is estimated to be adding approximately 30,000 new military personnel each month. Politico reported in late August that around 100,000 Russians had left for Georgia during a single week amid concerns about possible conscription.