Russian Region Warns of Possible Delays in Social Payments

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Russian Region Warns of Possible Delays in Social Payments

Authorities in Russia’s Primorsky Territory have warned that residents may experience delays in receiving social benefits as the regional budget comes under mounting pressure, partly due to expenditures related to the war against Ukraine.

The regional Ministry of Labor said the budget was operating “under increased strain,” including because of the need to address nationwide tasks associated with the “special military operation,” The Moscow Times reports.

“Under these circumstances, funding for certain social support measures is being provided in stages, so some payments may be transferred with temporary delays,” the ministry said.

The ministry acknowledged the importance of timely social assistance and expressed understanding of the concerns of residents waiting for their payments.

Previously, Minister of Labour and Social Policy of the Primorsky Territory Svetlana Krasitskaya said that one in three residents of Primorsky Territory received some form of social support.

The warning comes after lawmakers in Primorsky Territory approved a 3.8 billion ruble ($40 million) reduction in regional budget expenditures last week.

The cuts affect healthcare, housing and utilities, and affordable housing programs. Funding reductions also include spending on medicines, hospital construction, education, and public assistance.

At the same time, despite a projected budget deficit of 25.7 billion rubles ($319 million), an additional 1.5 billion rubles ($18.6 million) was allocated to the regional government’s reserve fund. The money will be used to provide financial assistance to participants in the war against Ukraine and their families.

Yulia Pak, deputy chair of the regional Legislative Assembly’s budget and tax policy committee, said the budget revisions were driven by spending optimization, savings from procurement procedures, the postponement of some construction expenditures until next year, and increased funding for military personnel and their families.

Acting regional governor Vera Shcherbina said the additional 1.5 billion rubles ($18.6 million) was needed to address issues of “national importance.”

The growing cost of recruiting personnel for the war is placing an increasingly heavy burden on Russian regional budgets, Janis Kluge, an expert at the German Institute for International and Security Affairs, said.

Kluge noted that, in an effort to meet recruitment quotas set by the Kremlin, Russian regions had raised the average payment for signing a military contract with the Defense Ministry to a record 3.4 million rubles ($42,200) this year. However, these expenditures have come at the expense of civilian spending.

Russian regions ended last year with a combined budget deficit of 1.5 trillion rubles ($18.6 billion). The deficit could reach a new record of 2 trillion rubles ($24.8 billion) this year, according to forecasts by Sberbank’s Center for Macroeconomic Research.

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Russian Region Warns of Possible Delays in Social Payments

Authorities in Russia’s Primorsky Territory have warned that residents may experience delays in receiving social benefits as the regional budget comes under mounting pressure, partly due to expenditures related to the war against Ukraine.