"Some violations and flaws were made in the execution of [Chechnya's] budget," Audit Chamber member Sergei Ryabukhin said.
In 2005, subsidies from the federal budget accounted for 86.5% of the republic's budget, Ryabukhin said. Individual income tax remained the main source of the republic's own receipts (65.3%), and amounted to 1.4 billion rubles ($50.87mln). Ryabukhin said this was evidence of slow growth in industrial production, construction, and other industries.
Ryabukhin said that 2.3 billion rubles ($83.58mln) had been allocated to Chechnya at the start of 2005 under a federal program to rebuild the region, which is largely in ruins following military operations against militants. He said, however, that 90% of the funds had only reached Chechnya in November-December and had not been spent in full, and blamed the delay on time-consuming allocation procedures between Moscow and the Chechen government.
