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#5 - JRL 2006-212 - JRL Home
[Duma Deputy] NGO Head Warns Crisis Brewing in Russia's Local Self-Government System

MOSCOW. Sept 21 (Interfax) - The system of local self-government bodies in Russia may suffer a systemic crisis and perhaps even a default in 2007, Russian State Duma deputy and head of the All-Russia Council of Local Self-Government Valery Galchenko announced Thursday.

"A systemic crisis in the system of local self-government may erupt in 2007" due to a worsening budget provision of municipal entities, especially after the adoption of Law 131 (on local self-government), he told reporters at Interfax's main office.

The deputy cited a conclusion by the Audit Chamber saying that the expenditures of an average Russian municipality were twice as high as its revenues and that only 2% of municipalities had non-deficit budgets.

Quite soon, probably in 2007, municipalities may face default, Galchenko said.