In 2027, Russia’s federal budget spending on servicing public debt will rise to 4.6 trillion rubles, or 9.4% of all expenditures, according to materials for the budget draft reviewed by Reuters. That is 670 billion rubles more than allocated for the current year, and almost as much as is planned for the entire “national economy”.
Russia’s federal budget spending on servicing public debt in 2027 will rise to 4.6 trillion rubles, or 9.4% of all expenditures, according to a The Bell article based on materials for the budget draft reviewed by Reuters. That is 670 billion rubles more than allocated for the current year, when 3.9 trillion rubles, or 8.8% of expenditures, are set aside for interest payments.
Almost as much will be spent by the budget on the entire “national economy” — on road construction, transport, agricultural subsidies, and support for industry. In 2028, debt payments, according to the same materials, are expected to increase to 5.3 trillion rubles, or 10.4% of expenditures, and in 2029 to 5.7 trillion rubles, or 10.6% of the budget.
Reuters also writes that this is 5.2 times more than in 2021, when 4.4% of the budget went to interest payments. In 2027, the Finance Ministry plans to borrow 7.7 trillion rubles on the market through OFZs — 2.3 trillion more than the current budget assumed.
According to the ministry’s estimate, public debt will increase from 19.9% of GDP this year to 21.7% in 2027 and to 24.1% by the end of the three-year period. The new budget also allocates a record 17.1 trillion rubles for defense and exceeds the debt threshold of 20% of GDP, which Finance Minister Anton Siluanov promised in December not to cross. In early September, Vladimir Putin called the budget deficit non-critical, citing the low level of public debt.
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