В.Путин.Послание ФС РФ.03.04.01 Part 2

Annual Address to the Federal Assembly of the Russian Federation Part 2
April 3, 2001
Moscow,the Kremlin

Послание Федеральному Собранию Российской Федерации
3 апреля 2001 года
Москва, Кремль

The situation requires once more analysing the situation in the country and the objectives that were set earlier, including those announced here in this hall last summer.A year ago it was clear that in order to ensure the success of the strategic transformations we wished to undertake, we would have to bring order to relations between the federal and regional authorities, and that not having clearly delimited powers and effective mechanisms for cooperation between the different levels of power would result in greater economic and social losses. We need a consolidated and effective state power system in order to act on urgent social and economic problems and security issues. I will name just a few of these priorities.The first task is to clearly define the specific powers of the federal centre and the countrys regions. This requires having federal laws, and I emphasise this point, federal laws that divide the powers and responsibilities between the federal and regional authorities. We need to minimise the potential for conflict in this area today by clearly defining the respective powers of the federal and regional authorities, otherwise this situation could give rise to new disputes and will be used by those who oppose this policy of strengthening the federation.The second task is to bring order to the system of regional branches of the federal executive authorities. At the moment they are financially and organisationally weak, duplicate the work of the regional authorities and sometimes are not even up to performing control and supervision functions. The government is to define new procedures for the establishment and work of the regional branches of federal ministries and agencies over the coming months.Finally, the third task, also technical in nature, is to bring order to inter-budgetary relations. Clear distribution of resources and tax revenue is essential for the different levels of power to be able to assume their responsibilities and effectively fulfil their mutual commitments.We carried out a redistribution of tax revenue between the centre and the regions last year. This aroused plenty of debate but it did go some way towards giving regions more equal opportunities and gave them increased possibilities for economic development. New procedures for allocation of budget transfers are already working in practice but still have to be cemented in law, and this will require a review of the current regional support funds activities. We are in urgent need of a transparent mechanism for allocation of budget subsidies and transfer payments to the regions.The municipal budgets are a crucial part of the countrys budget system. It is at this level, above all at local government level, that the different state management agencies carry out their functions. It is here that battles take place between regional and local authorities, between mayors and regional governors, usually over budget funds. As a result, budget money at all levels is not always used effectively and for its assigned purpose. This is at the root of much of the economic and political instability in the countrys regions.

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