Russia replacing market loans taken out by the regions with loans from the federal budget
Dispatch News Desk news agency
Moscow, Russia: Russia will replace market loans taken out by the regions with loans from the federal budget reducing at the same time the cost of such loans.
The decision was taken by the Russian President Vladimir Putin while chairing a State Council Presidium meeting on Measures to Improve Economic Stability and Financial Support of the Regions’ Authority.
He had directed commission for economic development and integration headed by Igor Shuvalov to work directly with the regions to coordinate the implementation of anti-crisis measures.
He directed the commission not to compromise with social support to the people provided by the government in the form of subsidies etc
President Putin said:
It is extremely important for each of the regions to conduct an in-depth and thorough analysis of their resources and capabilities, identify priority areas of development, internal reserves and work out, as I have already said, efficient mechanisms for the proper use of these reserves.
Putin reviewed status of regional budgets and heavy debt and loans, including those extended by commercial banks by the regions.
He was of the view that a key issue was improving the efficiency of inter-budgetary subsidies. He directed the commission to develop a mechanism for joint funding of regional and municipal expenditures using consolidated inter-budgetary subsidies, rule out any violations of deadlines for distributing these subsidies and ensure the subsidies reach the regions.
It may be mentioned that Russian President Putin has being heading almost all important meeting related with economy of the country after financial crises Russia is facing after European sanctions and massive drop of earning from oil selling.