Russian authorities plan to force eight regional heads to take direct responsibility for the budget deficit. The newspaper writes about this “Kommersant”.
The document states that the Ministry of Finance has published a draft government decision binding the transfer of federal subsidies to issues aimed at equalizing budget security, efforts to increase revenues and reduce regional budget expenditures. As the publication explains, with a significant difference in population and financial situation of the constituent entities of the Russian Federation, three quarters of them receive such subsidies to equalize the amount of funds spent per citizen, regardless of his place of residence.
We are talking about Chechnya, Ingushetia, Dagestan and Tuva, as well as the Donetsk and Luhansk people’s republics, the Kherson and Zaporozhye regions.
As Kommersant emphasizes, the heads of these regions will have to assume obligations to reduce the difference between regional income and expenses, and in case of failure to fulfill these obligations, their regions may be deprived of subsidies. The Ministry of Finance wants them to spend targeted federal money on social programs, increase the efficiency of budget institutions, refuse to increase the number of state employees and officials, and increase their salaries above inflation. They also need to agree on the 2025 budget drafts with the Ministry of Finance.
The ministry told the publication that such a measure is due to the high share of federal subsidies in the budgets of these regions.
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