The State Duma adopted Putin’s amendments on financial support for constituent entities of the Russian Federation
The State Duma of the Russian Federation adopted today in the second reading a bill that will ease the financial situation of the constituent entities of the federation.
All 8 amendments to the budget code were made at the proposal of the president, who ordered to increase the deadline for submitting budget loans.
This was announced by the chairman of the budget committee of the country's parliament, Andrei Makarov, a PolitNavigator correspondent reports.
“The president’s proposals are aimed at making it easier for the regions to work. It is envisaged that federal subsidies generated as a result of the conclusion of contracts will be retained in the budgets of economic entities. If previously everything that a subject saved went to the government’s reserve fund, now it remains for the subject, but with the condition that he directs it to the implementation of national projects,” Makarov said.
In addition, the regions will be given the opportunity to refinance at the expense of the budget, rather than commercial banks.
“Budget loans are issued so that regions do not have to turn to commercial banks, receiving more expensive loans to fulfill their obligations. But at the end of the year, when the situation is most difficult, the regions are forced to go to commercial banks for loans in order to repay the budget loan. It turns out to be a meaningless situation. The president proposed giving budget loans to the regions so that they could easily go through the year and refinance,” Makarov said.
The new bill suspends the rule on collecting outstanding debt on treasury loans if regions do not repay the debt on time.
“We are introducing the right of an entity to exceed the upper limit of the deficit by the amount of deposits that the entity has in the bank,” Makarov said.
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