Updated

Russia's government submitted a draft federal budget for 2027-2029 to the State Duma projecting a combined deficit of nearly 16 trillion rubles. Documents reviewed by Reuters show Russia plans record military spending of 17.1 trillion rubles in 2027 — a 27% increase, the highest since the 2022 invasion — while cutting planned spending on welfare, education and healthcare. Putin told the newly convened Duma that Russia 'will not run around the world with an outstretched hand' despite mounting deficit concerns. Analysts cited by The Moscow Times say Russia's economy can sustain roughly two more years of war without slipping into recession, though rising debt costs are pushing the government toward tax hikes and spending cuts that could weaken growth.