The number of subsidized regions in Russia may be reduced from 70 to 60 after redistribution of tax resources, Vice-Premier Alexander Khloponin said, RIA Novosti reports.
President Dmitry Medvedev said in his message to the Federal Assembly that a package of bills on decentralization of power will be introduced to the parliament. It will redistribute authority and budget resources to benefit regions and municipalities. An additional 1 trillion rubles may be gained from redistribution of tax resources.
The number of donating regions may increase from 13 to 23. Stimulation subsidies may be offered to regions that achieve the best results in developing business and investment attraction. Khloponin says that the benchmark for balancing budgets will be set at 85%.
The vice-premier noted that regions with 100% economic security will receive support as well, which has low influence on their economic development and would not stimulate them into becoming donor regions. There are 10-15 such regions, he believes.
