Official website of the President of Russia

News   /

Issues for improving the work of bodies of local self-administration and inter-budgetary relations were discussed, as well as problems of party organisation, and socio-economic development of the regions.

At the centre of attention were issues connected to carrying out administrative reform, and also the new system for electing heads of Federation regions.

The President stressed that the new law on heads of regions will increase the role of legislative bodies of the Federation regions, and will create conditions to strengthen the entire system of executive power in the country.

The government must take the necessary measures to ensure that major parties function in the country which will form responsible power, including at regional and local levels, Mr Putin said.

The President said he was not happy with the way that money was spent on the development of regions as a whole and the Southern Federal district in particular. Speaking of the expansion of powers of the regions, Mr Putin noted that it must be accompanied by delegating part of federal powers. This will make it possible to reduce the number of federal officials working in the regions.

Mr Putin supported the statement by Tatarstan President Mintimer Shaimiev on the necessity of developing a differentiated approach to taxation of the oil industry. A decision of the Government was passed earlier to introduce an undifferentiated tax on oil mining because it was not possible to administer the differentiated tax normally. Now, the President added, the cabinet of ministers agrees that this step was not entirely economically justified.

The President charged the Government with preparing proposals on introducing a differentiated tax on oil mining.