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The new law will entail revision of 250 federal legislative acts concerning division of powers between the different levels of state power and the way in which they are financed.

The law will also bring the social benefit system for people needing extra social assistance into line with the new division of powers between the federal and regional authorities. This will lead to most benefits being replaced by cash payments.

The President also signed a list of special instructions for the Government and for the Inter-ministerial Working Group on Federal Relations and Local Self-government, part of the Presidential Commission on Improving State Management, in order to ensure the new federal law is properly implemented.