FINANCE MINISTER KUDRIN: RESOURCE RENT SHOULD BE USED FOR MEETING COUNTRY'S STRATEGIC CHALLENGES

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NOVOSIBIRSK, October 9 (RIA Novosti) - Russian Finance Minister Alexei Kudrin believes that collection of the tax levied on extraction of natural resources "ought to be centralized" to facilitate meeting the country' strategic challenges.

"The resource rent belongs to the whole nation, therefore it should be utilized to ensure a breakthrough in the development of designated sectors. Among other things, the above include fundamental scientific research which cannot be financed at the regional level," Mr. Kudrin said in Tomsk (capital of the Tomsk Region in West Siberia and a major scientific center) where he arrived on a two-day visit.

According to the local government's spokesman Alexander Sevastyanov, the Minister pointed out that previously the federal center had to leave part of the resource rent in the regions because of the latter's underdeveloped tax base.

"The share of resource rent in the Tomsk Region's budget has been steadily going down over the past few years, with the regional budget concurrently improving its performance. This proves that today the Region's administration knows how to gain income from business development," he said.

In Alexei Kudrin's opinion, the personal income tax, land and property tax, small business tax and a share of the profit tax must become the main financial sources of regional development in the years to come.

Speaking at a session of the state commission for celebration of Tomsk's 400th anniversary, the Finance Minister said that before the end of this year the state budget would allocate 35 million rubles (about 1 million euros) to the Cardiology Research Institute of the Tomsk Scientific Center operating within the Russian Academy of Medical Sciences' Siberian Branch to equip the new building of the children's emergency cardio-surgery department.

Mr. Kudrin also said that the federal budget would allocate another 150 million rubles before the end of 2004 to ensure reconstruction of Komsomolsky Prospect, Tomsk's main thoroughfare.

"The infrastructure of the city, particularly of its center, has been substantially improved. Particularly impressive is the progress made in upgrading the engineering and material base of Tomsk University, one of the city's most valuable assets. The local government has also succeeded in resolving a number of sensitive social problems. Admittedly, not all of the projects on the city development agenda were completed by Tomsk's 400th anniversary, but we had never pursued such a goal. At the same time, we can proudly announce that the efforts undertaken by the state commission, sponsors and local residents have been very successful," Alexei Kudrin said at the session of the state commission.

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