(MOSCOW) – Public sector employees in at least 10 Russian regions are facing significant delays in salary payments as the Kremlin struggles with a widening fiscal deficit. An independent teachers’ union reported to the daily newspaper Izvestia that educators and medical professionals, who rely on state-funded salaries, have seen their January payments withheld without explanation. The shortages affect major administrative territories including Chelyabinsk, Irkutsk, Arkhangelsk, Tambov, Transbaikal, Khabarovsk, and Karelia.
The financial strain appears linked to a massive shortfall in the federal budget. Western intelligence reports suggest that by early 2026, the Russian deficit has exceeded 8 trillion rubles, which is approximately $86.4 billion at current exchange rates. Regional governors have reportedly been forced to rewrite their January budgets due to the central government in Moscow siphoning local resources to fund the ongoing invasion of Ukraine. This highly centralised system leaves regional authorities with the burden of logistics and public services but no liquidity to cover them.
In an attempt to manage the crisis, the Russian dictator, Vladimir Putin, has overseen the suppression of information. Internet outages have been reported across the country, including in Moscow, as the state seeks to prevent citizens from organising protests. There is also growing discussion regarding the reintroduction of state loan bonds. Under this proposal, an estimated 15% of a worker’s salary would be automatically diverted into government bonds, effectively forcing citizens to lend their earnings back to the Kremlin to sustain the war effort.
While the Russian Ministry of Education has offered “explanatory conversations” to disgruntled staff, no concrete timeline for payment has been provided. The Minister of Education has notably failed to address the core economic mismanagement, focusing instead on ideological persuasion. The situation is particularly dire in the far north and remote settlements, where a lack of regional funds has also disrupted food logistics.
School teachers in at least 10 Russian regions have faced delays in part of their salaries, an independent teachers’ union told the pro-Kremlin daily Izvestia on Thursday, as widening fiscal deficits strain public finances.
