The distribution of income between the Federal and regional budgets need to change, said in an interview with “Public television of Russia” the speaker of the Federation Council Valentina Matvienko.
According to Matvienko, Russia “it’s time to change the foundations of regional policy”. The financial situation of the majority of Russian regions in the last five years has deteriorated, said the speaker of the Federation Council, Recalling that 76 entities recorded budget deficit. She also reported a high differentiation of incomes in different regions, calling it “a disturbing development for a federated state”.
According to Matvienko, the Federation Council is now working with the government on the preparation of a new version of the basics of regional policy. “We believe that we need to change the concept of intergovernmental relations. Today 35% of all income is now averaging remains in the region, and 65% goes to the Federal budget. This is wrong. Need more income to keep everything the same in the regions because it [the current situation] leads to the fact that regional leaders lose the motivation development, they spend more time on the amount of money coming from the Federal budget in the form of subsidies, transfers, grants — rather than to build their own economic base,” said the Senator.
Matvienko noted that the adoption of the laws also marked a “roll” towards the Federal center. Russia should be a common legal framework, however, regional parliaments should get more powers, said Matvienko. “From Moscow it is impossible to regulate all such attempts lead to bad results,” she said.
In addition, the government is now engaged in the analysis of the powers of all three levels of government, said the speaker of the Federation Council, should be further composed their registry. Authorities also calculate how much is the implementation of different powers, and analyze the compliance of subsidy on their performance. Now the regions get more power, but they are not backed by funding, explained Matvienko. Subsequently, this may entail a change in the tax system of the country, said the speaker of the Federation Council.
In Russia there are some issues which should be resolved at the Federal level, in particular the financing of the army, but is now marked a “clear bias” in authority, said Matvienko. Proposals to change regional policy preparing for the meeting of the security Council, said Matvienko. On this issue, consultations are held, where among other participating heads of regions and the chairmen of the regional parliaments.