"We have built regulatory framework for much fuller clarity in defining authorities' rights and duties," Putin said at a State Council session, discussing ways to streamline the country's federal structure.
He said Russia is now entering a fundamentally new stage in the development of federal relations. He said the phase is marked by the regions' greater role and responsibility in economic matters.
Putin spoke about the need to redistribute powers, with the federal government delegating some of its authority to regional and local governments while in exchange for taking on some of their burdens.
He cautioned against rushing local self-government reform so that it would not be reduced to a staff reshuffle.
Putin said he is about to sign a decree on coordination between executive authorities at the federal and regional levels. He said it was important to avoid decisions that might lead to the destabilization of the country's government system.