GORKI, February 11. Prime Minister of Russia Dmitry Medvedev said mess and the budget allocation at the end of the year. “For several years, budget allocations are distributed only at the end of the year, he said at a meeting on the effectiveness of budget spending. Is just generally a disgrace”.
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“If something like this (the allocation of budgetary funds only in the end of the year) this year again, it is obvious that the disciplinary responsibility will come to all who thus prepared the documents. Regardless of ranks and titles,” he said.
Medvedev cited the data of the accounts chamber that by the end of 2015 the level of performance of expenditure obligations in Russia was recognized as the lowest in the past three years. According to Medvedev, it is “especially unfortunate given the fact that money becomes less, the economy shrinks, to fulfill the obligations more difficult, and the level of enforcement those costs already planned, deteriorating.”
Speaking about the distribution of funds only in the end of the year, Medvedev admitted that in such cases he “would like to call and make personnel decisions regarding the structures that they have long been prepared and made”. “At the end of the year, the avalanche dumped it all in the government, and then we are forced to make these decisions,” he said.
“If something like this this year again, it is obvious that the disciplinary responsibility will come to all who thus prepared the documents, – has warned Medvedev. – Regardless of ranks and titles”.
The Prime Minister acknowledged that it speaks about insufficient quality of budget planning. “A very long time contests awarding of public contracts, coordinated project documentation”, – he stated. Medvedev urged not to blame all these problems, the Ministry of Finance, although he “also probably, not ideal work.” Other officials, the Prime Minister said, “months of back and forth paper chase”.
About financial discipline
Medvedev praised the financial discipline in the country as “very weak”. “The main problem also lies in the fact that we are still very weak fiscal discipline”, he said.
“For obvious reasons, we know very little today, just to reduce expenditure. We critically important to learn how to spend money effectively,” stressed the head of government. “Now money is scarce and the effectiveness of their spending comes to the fore”, he added.
The Prime Minister emphasized that in terms of hard constraints is fundamentally important to learn to ensure the stability of the budget system, maintaining the conditions for the development of individual industries, social sphere and business, but also need to continue to implement infrastructure projects.
“So optimizing the costs are not the only means to reduce them, to spend less, although important, – said the Prime Minister. – It is important to focus resources on priorities. Competently to plan the financial flows, to use available funds”.
“Take them through the Treasury and run”
Medvedev believes it is important to prevent the growth of receivables of state-owned companies. “Our common goal is to prevent the growth of receivables. Will soon be the norm, envisaged by the budget law on Treasury support grants and contributions in the Charter capital of state companies. I hope that the Treasury will provide a comfortable environment so as to prevent failures in the current work of the state companies, so this did not affect investment plans”, – said Medvedev.
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The Prime Minister added that the Treasury will control spending by state budget funds.
Medvedev warned that if he does not like, as these costs are state-owned, “take them through the Treasury and run”.
Special attention the Prime Minister drew on the work of state-owned companies to government programs when state-allocated money for some projects either not spent, or redistributed repeatedly.
“Yes, we have difficult conditions, we are forced to reschedule much, but, nevertheless, you should try to minimize such decisions,” Medvedev said.
The Prime Minister also urged state-owned companies to carefully monitor their operating expenses.
A possible increase dividends of state companies
Possible increase state company dividends to 50% of net profit should not lead to a reduction in their investments, said Prime Minister of the Russian Federation.
The Federal property management Agency in early February suggested an increase in the rate of dividends payment of all state-owned companies to 50% of the profits to increase revenues. This means that companies will have less funds to achieve their investment programs.
Currently the minimum level of payments of dividends for public joint stock companies is 25% of net profit.
“We have had a number of measures to increase the revenues of the Federal budget, including the idea that the state company has to pay dividend not less than 50% of the profits. But such a decision does not mean automatic reduction of the investment activity of Russian companies”, – said Medvedev.
Medvedev suggested that companies can Finance investment through funds released by reducing transaction costs. In addition, according to the Prime Minister, cost-effective projects of state-owned companies can be funded using borrowed funds or through the sale of assets. He believes that this decision should lead to the rejection of inefficient projects.
Assessment of the Agency, the increase in dividend payouts can give the budget an additional 110 billion rubles.