The Ministry of Finance of Russia has developed a special procedure for the approval of budget drafts and their implementation in the Donetsk and Lugansk People’s Republics (DNR, LNR), as well as in the Kherson and Zaporozhye regions. About Wrote Publication of the RBC with reference to the content of the draft government decree.
It is noted that the document is designed for 2023-2025. It has already been submitted to the cabinet for consideration. The main innovations include shortening the budget planning time (one year instead of three), issuing cash through the field offices of Bank of Russia and Promsvyazbank.
In addition, new establishments will be classified as highly subsidized (the subsidy level for them exceeds 40% of their income).
According to Tatyana Tirskikh, Deputy Director of Country Ratings at Expert RA, innovations are typical for the transition period and the formation of the budget process in these regions, as it will take time to integrate them into the current budgetary process.
September 30 Russian President Vladimir Putin signed Decree on the inclusion of the DPR and LPR, as well as the Zaporozhye and Kherson regions. A transitional period is in effect in four regions until 1 January 2026.