The St. Petersburg administration has proposed cutting 70.2 billion rubles from 2026 spending as part of efforts to narrow the budget deficit and limit borrowing. The same draft plans to increase public officials’ base salaries by up to 5 percent annually in 2027, 2028 and 2029.
The administration approved the document on September 29 and submitted it to the Legislative Assembly. The draft includes salary increases for assembly members, deputy governors, city administration members and other public officials.
Spending cuts in the 2026 budget
The revision plans to reduce the 2026 budget from 1.651 trillion rubles to approximately 1.58 trillion rubles. The largest cut, amounting to 36.7 billion rubles, is planned under the economy heading, while transport spending is expected to be reduced by 9 billion rubles.
The allocation for construction of the Shirotnaya Expressway is planned to be cut by 10.8 billion rubles. Education spending is expected to be reduced by 15.5 billion rubles, while the healthcare committee’s budget is projected to fall by 8.5 billion rubles.
Approximately 6.8 billion rubles is expected to be cut from housing and public utilities, 2.3 billion rubles from the budget allocated to improve public spaces, and 1.9 billion rubles from road repairs.
Public-sector salaries and war payments
The draft includes plans to raise the monthly base salary of the chairman of the Legislative Assembly from approximately 149,100 rubles to 168,800 rubles in 2029. These amounts are equivalent to approximately $1,804 and $2,042, respectively.
The base salaries of deputy chairpersons and deputy governors are planned to rise to 159,400 rubles, while the salaries of city administration members are expected to reach 154,700 rubles. Public officials’ total income consists of their base salary as well as additional payments, bonuses and other payments.
The budget allocated for payments to Russian soldiers fighting in Ukraine and their families is also expected to increase by 6.4 billion rubles.
Target of reducing the deficit
The city administration justified the spending changes by citing high borrowing costs, an expected slowdown in the economy and efforts to reduce new borrowing. Under the draft, the 2026 budget deficit is targeted to fall by approximately 80 billion rubles, from 189 billion rubles to 108.8 billion rubles.
The draft projects St. Petersburg’s budget deficit for 2027 at 103.4 billion rubles.
