Vladimir Putin suggested giving governors the money allocated on the solution of regional problems

Sunday, February 5, 2023

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Russian President Vladimir Putin proposed setting up a system letting heads of the Federation's constituent entities have a direct influence on the federal budget formation without affecting the existing system. This proposal was made at the State Council's session in Moscow which focuses on the administrative reform in the country. Mr. Putin suggested giving governors the money allocated on the solution of regional problems. The head of state said he would discuss this issue with the prime minister. He expressed dissatisfaction with the non-productive expenditure of budget means. "Some regions have cardinal differences in business and investment climate, conditions of business development and, correspondingly, living standards," the president noted. According to Vladimir Putin, the direct increase of financial aid from the federal budget does not boost the economic growth of lagging regions. For instance, the consolidates expenses of the constituent entities of the Southern Federal District (except the Chechen Republic) grew by 160 percent over the last four years, he said. The financial aid per capita increased by 240 percent, he added. However, unemployment grew by 60%. "It means that we spend money on the wrong spheres. We should create independent economy and new workplaces," the president stressed. "The revenues of people in Russia's most unquiet region remain 1.5 times less the average Russian level in spite of the fact that this is the region of priority financing and the task of permanent increase of living standards," Vladimir Putin said.

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