VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Prime Minister Putin's introductory remarks:
Ladies and gentlemen,
We are meeting today with representatives of the main financial institutions to discuss what can be done in order to streamline the distribution of funds between the federal and local budgets, improve the effectiveness of support measures for the regions and create additional incentives for them. Clearly, during the post-crisis phase our financial and budget policies have to be tough since our resources are limited, as we have pointed out more than once.
Over the next few years, we'll need to resolve the problem of the federal budget deficit. This must be done by 2015, or even earlier if possible. We also need to increase the return on each rouble we provide. And we have adopted a programme to increase the effectiveness of public spending. In 2012 we will adopt new principles for drafting the federal budget on the basis of long-term state programmes.
We'll also need to address the issue of the distribution of funds between budgets to improve the quality of life of people, which is clearly in the interest of the regions. We should guarantee equal opportunities to all and provide access to high-quality state and social services to every citizen regardless of his or her place of residence.
I'd like to emphasise that during the downturn in 2009 the government provided substantial support to regional budgets. Even though their revenues fell drastically, expenses remained as high as they were before the crisis in 2008. In 2010 the regions received 1.365 trillion roubles from the federal government. In 2011 we plan to allot another 1.262 trillion roubles to them. This amount is slightly smaller than in 2010. This is because we have completed some of the anti-crisis measures already, the economy is picking up and regions are taking advantage of additional financial opportunities.
I'd like to point out again that the regions do have considerable funds; they just need to manage them in an efficient way. Regional budgets need to be thoroughly audited, and regional authorities should take measures to increase the effectiveness of their expenditures.
Turning our attention to the relationship between the federal and regional budgets, which, clearly, needs to be adjusted. First of all, it is necessary to increase the share of funds allocated for economic modernisation projects and expand the financial independence of the regions that demonstrate that they are concerned with economic development, carry out responsible budget policies, fund regional programmes and improve the quality of public services. We should give more freedom to proactive leaders that are ready to work and produce results. We do offer incentives to the regions, but local authorities don't think these are enough. The Ministry of Finance is well aware of this; I have personally discussed this issue with regional leaders. It's a fair point, in fact. We need to get rid of policies that restrict incentives for the regions.
One more initiative that deserves our attention is the need to merge subsidies provided through several programmes into one large allotment. The subsidies are too fragmented now. The funds budgeted for the regions in 2011 will be provided for 95 different purposes. Also, there are problems with the distribution of funding. In 2011, a total of 446 billion roubles are planned to be allotted in subsidies. Only 16% of this amount has been distributed so far.
Ultimately, as I have already said, one of our main challenges is to create effective financial mechanisms to stimulate the most successful regional economies. We will discuss different ways of addressing this challenge today. Governors have proposed their solutions... But I think we first need to listen to the Ministry of Finance.
