MOSCOW. Dec 26 (Interfax) - Russian President Dmitry Medvedev has proposed a differentiated approach to regions as part of the decentralization of power and thinks the government may start with pilot projects. "While decentralizing power, we must remember that we live in a large country, in which regions differ by geography and the level of their economic development," Medvedev said at a meeting of the State Council.
The regions need space for taking efficient measures towards higher living standards, Medvedev said.
"Such problems must be solved with full understanding of short- and longer-term consequences. Possibly, we need a differentiated approach, depending on the readiness of particular regions to assume additional powers. We may start from pilot projects," he said.
There must be no formalism in upgrading inter-budget relations, Medvedev said. "Financial decentralization must not result in the assignment of petty funds to the region, which will be divided by us later on. The regions must gain substantial additional funds for their work of full value," the president said.
The regions must use federal subsidies in a freer way, he said. It is necessary to think about the related mechanism and the degree of regional independence, he noted.
"At present a subsidy is granted for each delegated power. Twenty-one subsidies of the sort have been granted by now. Working groups for financial and tax matters and inter-budget relations consolidate federal funds within a unified subsidy," he said.
Financing mechanisms and legal guarantees must be discussed, the president said. "Regions must have no fear that some of the delegated powers may not be backed up with finance. We cannot do that," the president said.
A broader range of income sources of regional and municipal budgets is a key issue, Medvedev said. He referred to his latest address to the parliament, which said that regional and municipal budget might gain up to one trillion rubles in additional revenues in the future. "However, dear colleagues, we still need to find these sources," the president said, recalling a number of proposals. One of them suggested the re-distribution of some taxes and the annulment of certain federal benefits.
MOSCOW. Dec 26 (Interfax) - Russian President Dmitry Medvedev has proposed a differentiated approach to regions as part of the decentralization of power and thinks the government may start with pilot projects.
"While decentralizing power, we must remember that we live in a large country, in which regions differ by geography and the level of their economic development," Medvedev said at a meeting of the State Council.
The regions need space for taking efficient measures towards higher living standards, Medvedev said.
"Such problems must be solved with full understanding of short- and longer-term consequences. Possibly, we need a differentiated approach, depending on the readiness of particular regions to assume additional powers. We may start from pilot projects," he said.
There must be no formalism in upgrading inter-budget relations, Medvedev said. "Financial decentralization must not result in the assignment of petty funds to the region, which will be divided by us later on. The regions must gain substantial additional funds for their work of full value," the president said.
The regions must use federal subsidies in a freer way, he said. It is necessary to think about the related mechanism and the degree of regional independence, he noted.
"At present a subsidy is granted for each delegated power. Twenty-one subsidies of the sort have been granted by now. Working groups for financial and tax matters and inter-budget relations consolidate federal funds within a unified subsidy," he said.
Financing mechanisms and legal guarantees must be discussed, the president said. "Regions must have no fear that some of the delegated powers may not be backed up with finance. We cannot do that," the president said.
A broader range of income sources of regional and municipal budgets is a key issue, Medvedev said. He referred to his latest address to the parliament, which said that regional and municipal budget might gain up to one trillion rubles in additional revenues in the future. "However, dear colleagues, we still need to find these sources," the president said, recalling a number of proposals. One of them suggested the re-distribution of some taxes and the annulment of certain federal benefits.