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Vladimir Putin: Obviously, every level of authority, every level elected by the people, must have a clearly defined zone of responsibility and competence. And, of course, sufficient financing or other resources to exercise the powers at each level.

This does not mean that such resources will be provided in full by the federal authorities or the federal government. The powers and responsibility of the regions and local bodies of self-rule, as well as their own economic bases, are quite considerable factors of development. And these, I repeat, need to be used appropriately and with initiative, particularly when establishing conditions for entrepreneurship, and the development of citizens’ business and creative initiatives.

The clear delimitation of powers has taken on a new urgency because the administrative reform has been launched in the country. It is already actively proceeding at the federal level and should be taken up by the regions and municipalities. Of course, it must be implemented in an accurate and balanced way.

The first thing that should be done is a detailed analysis of public functions. Superfluous ones need to be abolished, especially those that interfere with citizens’ economic activity, and increase corruption and unjustified state expenditures. I want to stress not any, but precisely unjustified state expenditures; in other words, squandering money, from which citizens gain nothing.