Growing calculation. The economist explained why salaries for public sector employees are being increased

Growing calculation.  The economist explained why salaries for public sector employees are being increased


Increasing wages for public sector workers employed in education, healthcare, culture and science have a multidirectional impact on both the individual recipient of the salary and the state, said. Professor of the Department of Public Finance, Faculty of Finance, Financial University under the Government of the Russian Federation Yulia Tyurina. According to her, thanks to higher wages, workers have more opportunities to spend on current needs, which in turn stimulates the economy.

“This has a positive impact on a person and reduces the desire to leave the public sector for the commercial sector, where wages are much higher. An increase in income also leads to an increase in demand for various goods, works, and services, which is also very important for the state. Consumer demand is growing, which entails the need for increased supply from manufacturers. In other words, incentives for economic development appear,” Tyurina noted.

This aspect is important for the state, since the presence of demand affects the increase in labor productivity, the volume of gross domestic product, and, as a result, an increase in the receipt of taxes and other obligatory payments to the budget, the need to expand production, and the growth of those employed in the economy, the economist clarified. These economic processes make it possible to solve a number of other problems facing authorities at different levels, for example, unemployment issues.

“The incomes of public sector workers largely depend on the decisions of the federal center and regional authorities within their competence. There is often a situation where there are quite significant differences in income within one region and even one organization. Currently under discussion is a bill on uniform base rates for salaries of public sector employees, which will eliminate dubious differences,” Tyurina emphasized.

About 190 billion rubles were allocated from federal funds to increase salaries for public sector employees last year, the Prime Minister of the Russian Federation said Mikhail Mishustin during a speech with a report in the State Duma. He noted that salaries were brought into line with the May presidential decrees. The decision affected over 5 million state employees.

“The government is constantly paying attention to the issues of remuneration for employees of the public sector: teachers and university professors, doctors and other medical personnel, specialists in the social and cultural spheres, and science. All of them raise our children, care about people’s health, engage in vital research and introduce millions of citizens to the arts. To increase the salaries of medical workers, about 30 billion rubles were also allocated. from the Federal Compulsory Medical Insurance Fund,” Mishustin said.

Also, the Prime Minister of the Russian Federation stated that insurance pensions of Russians at the end of 2023 increased by a total of 15%. This was done as part of the work to combat poverty and inequality, the importance of which the president spoke about in his address. He recalled that the head of state had previously outlined six key tasks for the government, one of which was improving the well-being of citizens.


Original Source Link