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Mr Putin stressed that the law aims at decentralising management in areas where this is justified and would make it more effective. He also noted, however, that management will only become more effective if municipalities receive not only new responsibilities, but also added powers and the necessary financing to enable them to meet their current obligations and take on the added responsibilities they will have under the new law.

The President also emphasised that one of the main reasons for changing the legislation is to ensure that the authorities at each level of power have the necessary financing for their tasks, and to prevent higher-standing authorities from passing on responsibilities and problems down to lower-standing authorities without provisions for the relevant financing.