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Vladimir Putin discussed issues of restricting the powers of various levels of power with members of the State Council, and also on improving the work of bodies of local self-administration.

The new system for allocating powers to heads of regions significantly increases the role of legislative bodies of the Federation regions, and what is particularly important, it creates conditions to strengthen the entire system of executive power in the country.

This process must be accompanied by a widening of powers of the regions by delegating part of federal powers, above all in the economic and budget spheres.

The President believes that the funds that are allocated by departments and Ministries for solving regional problems must be given to governors.

This will make it possible to avoid parallel financing and their unproductive use in constructing objects of regional and local importance.

This approach will improve inter-budgetary relations and stimulate the development of the economy in the regions and municipalities.

At the same time, budget projects for subsidised regions must be liable to an independent public audit, Mr Putin said.