State business: the government has allocated 14 billion to compensate for the increase in salaries of state employees

The government is compensating regional expenses for wage increases due to the increase in the minimum wage. Which regions will receive the money and which professions can expect to be promoted, Izvestia reports.

Who will receive the funding

14 billion rubles will be distributed to 33 regions of Russia, and the federal subjects with a high share of socially significant expenses are included in this list.

Among the regions that apply for additional funding from the federal budget are the Republics of Adygea, Buryatia, Mordovia, Tuva, Khakassia, Altai, Zabaikalsky and Stavropol Territories, Astrakhan, Kostroma, Orel, Pskov, Tomsk and Ulyanovsk regions. 1.7 billion rubles will be allocated to the regions of the North Caucasus, where salaries are among the lowest in Russia.

The composition of the regions is not entirely homogeneous, and the subjects were included in the list for various reasons, Ekaterina Kosareva, managing partner of the analytical agency VMT Consult, is sure.

— The first reason is very modest financial opportunities, a low tax base, which makes the budget unprofitable. This is relevant for the republics of Adygea or Buryatia. The second reason is the geographical factor. In a number of regions, increased budget expenditures are associated with overcoming difficult climatic conditions, especially in winter. This explains the presence of relatively prosperous Siberian regions in the list. The third reason is demographic characteristics. In particular, there is the problem of population outflow, which increases the burden on the budget for the maintenance of social institutions - for example, Astrakhan and Pskov regions, she argues.

An urgent need

Olga Belenkaya, head of the Macroeconomic Analysis Department at Finam, explains the need for decisive government action by the tense situation in the budgets of these regions and their unwillingness to the upcoming increase in the minimum wage by more than 20% from January 1.

— Some of these regions, such as Tyva, Buryatia, and Altai Krai, are highly subsidized. And regions such as Tyva and Adygea are also the most heavily indebted regions," she comments.

In 2026, the minimum wage will be significantly increased — 27,093 rubles instead of the current 22,440 rubles, that is, by more than 20%. For a number of regions where a significant share of budget expenditures is made up of the social sphere, where there are many teachers, doctors, scientists, and social workers, with weakly growing incomes, such an increase can cause a hole in regional finances, especially in subsidized regions, says Yulia Makarenko, Deputy director of the Banking Institute for Development.

"An additional payment from the federal budget will help to bridge or reduce the financial gap and fulfill obligations to public sector employees," she says.

According to the interlocutor of Izvestia, such a decision could be made only after a comprehensive assessment of the stability of regional financial systems.

Who will be affected by the salary increase

First of all, the increase in the minimum wage will affect the incomes of those state employees whose salaries are tied to the minimum wage, and this is not only teachers and doctors, Ekaterina Kosareva emphasizes.

— These are primarily employees of the education sector (educators, teachers, teachers of additional education, teachers in secondary and higher educational institutions), the medical sector (doctors in hospitals and polyclinics, ambulance staff, junior medical staff), the sphere of social services for citizens, employees of cultural institutions. And besides, there are representatives of special services and local officials," the analyst lists.

According to her, this way the uninterrupted operation of educational, healthcare, social protection and cultural institutions will be ensured.

— The amounts will probably be transferred as an inter-budget transfer, since the subsidy does not involve standard current federal budget expenditures. This is assistance to the regions to cover their obligations to public sector employees," Kosareva suggested.

Positive consequences

The urgent allocation of funds is primarily a signal that the state is fulfilling all its social obligations in full, says Yulia Makarenko. According to the expert, this short-term measure will avoid delays in payments and maintain the income level of employees of budget organizations. Thus, the increase in the minimum wage will affect not only the salaries of state employees, but will also affect the minimum amount of sick leave and maternity benefits.

The allocation of federal funds to compensate for the growth of public sector salaries is of broader importance than just supporting certain categories of workers.

— In a number of regions, the social sphere forms a significant part of budget expenditures. Without compensation for the increase in the minimum wage, the authorities would have to cut other budget items, such as investments in infrastructure, capital repairs, and support for small and medium—sized businesses, which would create additional pressure on local economies," Yulia Makarenko summarizes.

As the interlocutor of Izvestia emphasizes, the federal subsidy allows to maintain a balance: to ensure a decent level of income for teachers, doctors, social workers and cultural workers, while not reducing the quality of public services and not creating a deficit in other areas.

"In addition, such measures help to stabilize consumer demand in the regions, stimulate demand for Russian products, especially agricultural and consumer goods, which indirectly supports economic activity and the business environment," summarizes Yulia Makarenko.