MOSCOW, July 29 (RIA Novosti) - The budget reform was in the focus of the president and the government's attention yesterday. Vladimir Putin met Finance Minister Alexei Kudrin and Tatyana Nesterenko, Federal Treasury chief, to discuss problems related to the treasury system's development. Vice-Premier Alexander Zhukov presided over a meeting of the commission for making budget spending more effective, writes Kommersant.
The budget reform is designed to ensure the effective use of budget funds. It is also expected to streamline budget spending, which will allow all domestic resources to be mobilized to ensure the needs of the population and the economy.
The budget planning reform is also expected to streamline the regional and local budgets. Regions and municipal entities will have to hold accounts at the Federal Treasury. The state will thereby be in control of financial flows in regions and municipal entities.
The provinces are not happy about the prospect. For six months they have been trying to persuade the Finance Ministry that the transfer of their accounts to the Federal Treasury runs counter to the Constitution, writes the paper.
