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The participants in the meeting discussed preparation of bills on the delimitation of terms of reference between different levels of authority.

The head of state said the problem of the distribution of powers among the federal centre, regional and local authorities had been widely discussed by Russian society. An ad hoc commission, established by a Presidential decree a year and a half ago, prepared two bills aimed at significantly decentralising power and setting uniform rules and financial mechanisms for terms of reference transferred to the local authorities.

The President said implementation of that decision would necessitate additional expenditures by regional and municipal budgets, which would require corresponding amendments to the Tax and Budget Codes.

Mr Putin asked the deputies to show maximum responsibility and attention in their work on the bills concerned, with due account taken of the experience of federative construction and local self-government.

The participants in the meeting were Speaker of the State Duma Gennady Seleznyov; the leaders of the Unity party, Vladimir Pekhtin, Communist party – Gennady Zyuganov, LDPR – Vladimir Zhirinovsky, Fatherland-All Russia –Vyacheslav Volodin, Union of Right Forces – Boris Nemtsov, Yabloko – Grigory Yavlinsky; heads of the Ago-industrial parliamentary group; the leader of the People’s Deputy group, Gennady Raikov; and Russia’s Regions – Oleg Morozov.