"That is, we can in January-February allocate part of such transfers that the region wants. We can give a two-three-month transfer in January; we can give a third of the year in the first quarter," Mr. Kudrin said at a press conference after the session of the Siberian federal district on issues of transferring to the three-level system of budget financing.
"We can send money ahead of schedule so it is not killed by inflation, works for the region and allows it to normally enter a new situation," added Mr. Kudrin.
He also noted that the federal budget could grant regions privileged loans and restructure part of their debts.
"Besides, at the end of this year we will pay off the debts accumulated in the regions in relation to veterans or disabled veterans so that we could start the new year without debts, and this money has been envisaged," said Mr. Kudrin.
In his words, the conference participants also agreed that the federal budget would co-finance privileged payments each constituent member of the federation would make for its citizens.
"In particular, in the regions where the fund is more subsidized, up to 40% will be subsidized from the federal budget," said Aleksei Kudrin.
Today's statement by Russia's Finance Ministry notes that the federal budget will be implemented in January-October 2004, by preliminary assessments, with a surplus at 504.94 billion rubles ($1 equals 28.76 rubles).
This makes 22.5% of the sum of expenditures' financing and 3.7% of the GDP volume for January-October 2004.
By preliminary assessment, the federal budget will be executed on revenues at 2,746,670 million rubles, or 100.1% against budget allocations for 2004; on expenditures, to the sum of 2,241,730 million rubles, or 83% against the specified budget for 2004.
