The may decree will be funded from the Federal budget to 95% :: Economy :: RBC

Most of the cost of implementation of the may decree of Vladimir Putin will take over the Federal budget, said the first Deputy Minister of Finance Leonid Gornin

Vladimir Putin

(Photo: Alexander Zemlianichenko / Reuters)

The Federal budget will take 95% of the costs to run the new the may decree, said first Deputy Finance Minister Leonid Gornin, speaking at a financial forum in Moscow, reports RBC. Regions, according to him, will take 5% of spending.

“Provision of resources concentrated in the Federal budget. And very important faster to bring to our colleagues, the volume of resource provision”, — said the first Deputy Minister of Finance.

The may decree of President Vladimir Putin, according to the authorities, will cost 8 trillion additional spending over the next six years. Gornin said that these funds found. “This year and the next, until 2024, we will offer co-financing of all national and Federal project of the corresponding decree in a more comfortable environment,” said Gornin.

“Basically, according to our estimates, up to 60% of the issues that are fixed in 12 national projects and more than 70 Federal projects — they fall on the shoulders of our subjects of the Russian Federation”, — said Gornin. The regions should organize a system of planning and control tasks of the national projects, he said, but the Federation will provide funding to 95%.

The Governor of the Perm edge Maxim Reshetnikov, however, said that different Federal sectoral agencies in the regions are different “introductory” with regard to the funding of the may decree. “Someone said three-nines (99.9% uptime. — RBC), someone says 70/30 — there is a range of opinions. I understand that this is, obviously, development stage, and now it’s all synchronized, but to discuss with the regions, by and large, now nothing special” — said Reshetnikov. In terms of 95/5 funding of national projects will not be a problem for the regional budgets, said Reshetnikov. But while key goal indicators from the projects is not defined.

The budgets of the regions hit past decrees of may (2012), which included the costs of increased salaries. Against the backdrop of slowing economies, sanctions and falling oil prices, the regional budgets are faced with an imbalance, and large deficits. At the end of last year the Ministry of Finance initiated a restructuring programme budget loans to the regions. Putin warned that the regions should not re-gain debt, and the Federal government will be essential to look into this.

Gornin on the forum also said that the format 95/5 agreed in government. “The Federal government can ask the actors to increase their share of funding under Federal programs. [However] the recommended settings were supported by the Chairman of the government on the appropriate specially held meeting in the government of the Russian Federation. And I believe the Federal ministries and departments must adhere to those recommendations that proposed by the Finance Ministry,” said Gornin.

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