Russia cuts education and healthcare budget as war spending hits new high

The government is also spending more on servicing its debt as high interest rates increase borrowing costs. Russia is preparing to cut spending on welfare, education and healthcare in its 2027 federal budget while raising taxes, as the government struggles to meet the rising cost of its war in Ukraine, according to fiscal documents reviewed by Reuters.The draft budget proposes 17.1 trillion roubles ($202.58 billion) for defence in 2027. That is about 27% higher than the 13.5 trillion roubles originally allocated for defence and would be the highest military spending level since Russia launched its full-scale invasion of Ukraine in 2022.Military spending takes priorityThe increase in defence spending comes as Russia's finances have come under growing pressure during the four-and-a-half-year war. Moscow has used its fiscal reserves, borrowed more money and raised taxes to help finance its expanding military expenditure.The new budget would reduce spending on social policy by 7% from the initial plan. This area covers state pensions, payments to war veterans and maternity benefits.Education spending would fall by 6%, while healthcare funding would be cut by 6.8%.Spending under the "na...