Regional budgets alone may not be able to cope with the increased costs resulting from increases in public sector wages. This was reported by Forbes with reference to the review of the draft federal budget by the State Duma Committee on Regional Policy and Local Government.
According to MPs, salaries of public sector employees account for half of regional budget expenditures. The indexation of the minimum wage, on which the salaries of some public employees depend, will continue in 2024. There is also a 2012 executive order requiring districts to maintain salaries for teachers, doctors, and other categories at a certain rate to the district average level.
At the same time, the capabilities of the regions are limited. As noted by RANEPA Regional Policy Center director Vladimir Klimanov, transfers from the federal budget in 2024-2025 will decrease significantly. In its forecasts, the Ministry of Finance overestimated the growth of the regions’ own revenues. Already half of Russia’s regions are closing the year with a deficit and their debts are increasing.
Klimanov warns that if this trend continues, regions will be forced to take more and more loans and their dependence on the federal center will increase. According to the Accounts Chamber, public debt on budget loans of the regions in 2022 has already increased by 44%.
The State Duma does not exclude that in 2024 regions will have to increase the volume of federal subsidies. Leaders in the country have assured that this is necessary to fulfill social obligations to teachers, doctors and other public sector workers.
Last week, the Court of Accounts saw the risks exaggeration Oil price forecast in budget.
It was previously known that the Ministry of Finance of the Russian Federation can. come back On changes to basic tax rates