The regional financial crisis has entered a phase of open payment defaults. In the Zabaykalsky Krai (Transbaikal), which is facing a record budget “hole,” college and school teachers have been left without payments for January and February. The situation in Chita and Mogoch confirms a grim trend: when resources are scarce, the system sacrifices social obligations to favor federal priorities, leaving public sector workers without means of subsistence. Chronicle of Non-Payments: From Chita to the Mogochinsky District Complaints from educators, documented by local media, point to a systemic failure. At the Zabaykalsky Transport Technical School, staff were explicitly told there would be no money for February, even as March advances became due. A similar crisis is unfolding in schools across the Mogochinsky District, where teachers have yet to receive their January classroom management allowances. While pay slips officially record the amounts, bank accounts remain empty. This creates a state of “paper prosperity,” masking a real lack of liquidity in the regional treasury. The 12-Billion-Ruble Budget Deadlock and the Cost of Deficit The troubles in Transbaikal are a direct consequence of the budget approved in December, featuring a 12.2 billion ruble deficit (against 174.5 billion in expenditures). As the federal center centralizes major revenues and one-third of total spending is diverted to military needs, transfers to regions are being slashed. Consequently, local authorities find themselves trapped without leverage to cover the cash gap, and the education sector—the most vulnerable and populous category—is the first to take the hit. Risks of Social Erosion in Depressed Regions Salary delays across ten Russian regions since the start of 2026 indicate an erosion of the “social contract.” Teachers, traditionally a loyal pillar of the system, are the first to feel the impact of the budget crisis. In the long term, this threatens not only a brain drain from the education sector but also a rise in underlying social tension that cannot be suppressed by propaganda or the Ministry of Finance’s “creative accounting.”