Prime Minister Vladimir Putin met with Regional Development Minister Dmitry Kozak
The transcript of the beginning of the meeting:
Vladimir Putin: Good afternoon. What's new?
Dmitry Kozak: We have evaluated the budget implementation for the municipal sector for this year's first seven months, which has revealed that all constituent entities in Russia are showing rapid income growth rates. This means the regions' potential is expanding, and certain mechanisms which we developed are working - in particular, the measures to stimulate the regions' development, which were approved by the Government last May.
In this year's first seven months, the overall income of Russia's constituent entities has increased by 475 billion roubles ($20.2 billion) as compared with the same period in 2007. It is essential that this money will used as planned, to raise the standard of living and boost regional development.
We can state today that 120 billion roubles ($5.1 billion) out of this income have been spent on health care. The wages of public sector employees have been increased in all constituent entities in order to put the positive tendencies in the economy to optimal use.
Vladimir Putin: The increase in wages for public sector employees in the regions should be coordinated with our plans to increase the labour compensation fund for the budget-paid employment sector. On December 1, federal employees will get a 30% increase in wages, and all of this has to be coordinated.
Dmitry Kozak: We are taking relevant measures to avoid discrimination against public sector employees. We have been improving the measures intended for this purpose and have submitted certain proposals to the Government on further improving the mechanisms for encouraging the regional and local governments to expand each territory's economic potential.
One of the Government's major goals is to equalise the level of the territories' development, which should primarily result from each territory's own development. For this purpose, we will evaluate the work in the regions in 2007 according to the indicators approved last year.
We already have the preliminary results and proposals on the distribution of governmental grants among the most dynamically developing regions. For this purpose, the Government has approved certain resolutions, including Resolution No. 392, which you signed in May, which imposes responsibilities on both regional and municipal governments for the effective use of the finances allocated from the federal budget.
I would also like to point out that we also intend to continue monitoring the preparations for the winter season. We have already looked at the results for the first month of work, which have revealed what each regional government is preparing for the winter season in comparison to the others. As you know, there is a national rating in Russia which ranks all constituent entities concerning the winter preparation works.
We held a telephone conference which involved all regional top officials and suggested that they should impose similar measures in their work with municipal administrations, since it is primarily the latter that bear the responsibility for these activities. In the short term, we intend to propose a number of measures to the Government to improve the country's regional policy, which will include preparation of strategic plans for Russia's regions, municipalities.
Vladimir Putin: How is the work in the housing and communal services sector going? What about the utilisation of the housing and communal services fund, which was established last year, and the work on resettling people who live in dilapidated housing?
Dmitry Kozak: At the moment, 68 regions have signed agreements and received money from the fund. I see this as a good result, considering that the regional administrations had to introduce large-scale and detailed programmes of housing capital repairs, resettlement of people living in dilapidated buildings, and most primarily, the programmes for reforming the housing and communal services sector. Sixty-eight constituent entities concluded the agreements, which means they have fulfilled the legal requirements.
Vladimir Putin: How much is going to be spent out of the fund on the purpose?
Dmitry Kozak: So far, subsidies worth 32 billion roubles ($1.4 billion) have been allocated to the regions. I expect the sums to reach 50 billion ($2.1 billion) by the end of the year.
Vladimir Putin: Good.
