Russian Finance Minister Projects 1.4% Real Income Growth in 2027, Confirms Minimum Wage Target

MOSCOW, October 5. /TASS/. Real household incomes in Russia are projected to rise by 1.4% in 2027 and by an average of 2.5% annually over the following two years, Russian Finance Minister Anton Siluanov announced during parliamentary hearings in the Federation Council.

According to him, the target set by Russian President Vladimir Putin to raise the minimum wage to 35,000 rubles ($412.09) by 2030 will be achieved.

Siluanov noted that the draft federal budget prepared for the next three years is resilient to any economic development scenario. He emphasized that the budget allocates necessary resources to achieve national development goals, ensure macroeconomic stability, and boost real incomes.

TASS has compiled the key statements made by the Finance Minister.

Growth in household incomes

Real household incomes in Russia will rise by 1.4% in 2027 and by an average of 2.5% annually over the following two years: "The budget reduces its impact on the money supply, making room for private lending and putting the economy on a growth trajectory. This is crucial for maintaining macroeconomic stability, lowering inflation, reducing interest rates, and increasing citizens' well-being. In 2027, real household incomes will grow by 1.4%, and by an average of 2.5% annually over the subsequent two years."

The minimum wage target set by Putin to reach 35,000 rubles ($412.09) by 2030 will be met: "Next year, the minimum wage will rise to 28,935 rubles ($340.68). The goal set by the President--to ensure the minimum wage reaches 35,000 rubles ($412.09) by 2030--will be met. This will help accelerate wage growth for low-income workers."

Social Obligations

"Social policy is the top priority. The necessary funds have been allocated to fulfill social obligations."

"Payments to veterans and people with disabilities, as well as maternity capital, will be adjusted to the previous year's inflation rate."

By the end of next year, the average old-age pension will reach 29,904 rubles ($352.09), and the subsistence minimum will rise by 6.8% to 20,227 rubles ($238.15): "Insurance pensions will be increased twice next year. On February 1, they will be adjusted for inflation--estimated at 6.8% for 2026. Then, on April 1, the insurance component of the pension will be further increased by 3.3%, based on the rate of wage growth."

Draft Budget

"The draft federal budget provides resources to implement the national development goals set by the President, ensure macroeconomic stability, and boost citizens' real incomes. All of this is crucial for safeguarding our country's sovereignty."

"The Government has submitted the draft budget for the upcoming three-year period to the State Duma. <…> I would note that the prepared draft budget is resilient to any scenario," the minister said. "The baseline price for Urals crude is being lowered from $59 per barrel this year to $50 for the coming three years. Furthermore, the share of oil and gas revenues will not exceed 17% over the next three-year period. In other words, we are seeing a reduction in the budget's dependence on market conditions."

Revenues

"The share of oil and gas revenues will not exceed 17% during the upcoming three-year period."

"We are seeing a reduction in the budget's dependence on market conditions. The so-called non-oil and gas balance will also stand at around 5%, the lowest level since 2008."

"Next year, the volume of own-source revenues for regional budgets will amount to 24.7 trillion rubles ($290.82 bln)--nearly 25 trillion ($294.35 bln). This amount has doubled compared to 2021, meaning that revenues--specifically the stable revenues of Russian regions--are growing."