SERGEY Belev: “DOES WAGE FREEZE THREATEN STATE EMPLOYEES”

Sergey Belev, Head of Budget Policy Department, Gaidar Institute, gave comments for “AiF” on MinFin plans to cut budget for the coming years.

“Yes, MinFin of Russia proposed to slash the so called unprotected part of budgetary allocations for 2021-2023 by 10% and to cut state arms program by 5%. This will permit to partially offset the shortfall in revenues in the wake of pandemic and the oil price plunge. However, allocations for wages paid to public employees is a protected line they are not affected by the reduction. They will be indexed subsequent to inflation as it should by law. Social benefits, cash allowances, and pensions to military personnel will not be frozen either. However, indexation of wages of federal officials whose positions are mentioned in the law “On Sate Service” can be put on hold,”- noted Gaidar Institute expert.