The pro-Kremlin United Russia faction, holding a majority of seats in the State Duma, threw its weight behind the new package while Opposition factions rejected the bill, citing its unconstitutionality and arguing that it would only aggravate the plight of Russia's socially least advantaged population groups.
The bill introduces amendments to 155 federal laws and abolishes 41 others. It also puts federal legislation in line with the law on the division of authority and budgetary obligations at all levels of government.
Under the bill, benefits, such as free transport and subsidized medicine, for disadvantaged residents shall be replaced with monetary compensations starting in 2005. The amount of compensatory payments is up to the Russian government to fix.
In keeping with Opposition MPs' wishes, labor legislation has retained a provision on the minimum wage while also acquiring a clause on the inadmissibility of cutting public-sector workers' pay below the level established for December 31, 2004. Persons whose health had been undermined by the 1986 accident at the Chernobyl nuclear power plant and residents of Russia's Arctic regions will continue to be provided with welfare services free of charge or at a discount.
An ad hoc three-party federal commission will be working out recommendations on the minimum pay, to be used by Federation member states as they assign wages to their public-sector workers.
The bill also carries a clause on a minimum welfare package, worth an estimated 450 roubles (US$15.5, on current rates), which will provide reduced commuter rail fares, free or discounted medications, and accommodation and services at health retreats. All population groups designated as socially disadvantaged will be receiving this package from 2005 onward. Starting in 2006, disadvantaged residents will be able to choose between monetary benefits and free or discounted welfare services.
Some of the lawmakers proposed an amendment providing for the appropriation of money from the federal Treasury coffers to pay compensations to victims of political repression, but this amendment failed to get through. An alternative option was passed instead, one that envisages the allocation of funds from regional coffers and the granting of federal subsidies to help the regions cope with welfare expenses.
The Duma also passed an amendment foreseeing the central government's funding of pre-college education by providing local authorities with subventions for the implementation of general educational programs.
