The Senate Committee on Finance and Budget held a meeting with the concerned government agencies, where the improvement of approaches in determining general transfers was discussed. In addition, they heard information on the outcome of the Accounts Committee’s audit of their formation.
In her speech, Committee Chairman Olga Perepechina pointed out that the issues of inter-budgetary relations have great significance for ensuring the efficiency of state administration in general and between all levels of power, as well as for the efficient use of budgetary funds.
She said that the current volumes of general transfers are very slow in levelling the disproportions in the development of the regions. The local budgets remain highly dependent on the national one, and there are problems of predicting the budget’s revenue capacity.
“As a consequence, these and other factors adversely affect the quality of budget planning, the continuous development of inter-budgetary relations, and the provision of equal state-guaranteed services to residents and thus requires a more in-depth improvement of the existing methods to form general transfers,” Olga Perepechina said.
Chairman of the Accounts Committee Natalya Godunova also confirmed the dependence of the regions on the national budget. She quoted the statistics showing that the share of funds received from the national budget was 58% in the total amount of revenues of the local budget for three years. Donor regions are not taken into account. Furthermore, the Chairman of the Accounts Committee proposed some measures that would enable the rational calculation of general transfers.
In the course of the meeting, the participants had a comprehensive discussion of the planning and improvement of the calculations of this kind of transfers.