According to newspaper Kommersant, the federal government is preparing mechanisms for Moscow’s takeover of management in regions unable or unwilling to meet budget requirements.
It is the financial crisis, which has made Regional Development Minister Viktor Basargin present his new proposed measures. As BarentsObserver has reported, a number of regions are about to lose control over regional economy as incomes dry up. Arkhangelsk Oblast is one of the regions badly hit with regional budgets cuts so far this year amounting to more than 30 percent.
Minister Basargin confirms that a number of regions will get up to 70 percent drops in revenues in the second quarter of the year. Meanwhile, the number of donor regions – the regions being net contributors to the federal budget – might this year be reduced from 11 to only two.
The threat of external management might make regional leaders comply with federal recommendations. However, Moscow also runs the risk of having to take over the management of major number of troubled regions. That could prove to be an impossible task, which eventually will discredit the federal authorities in the regions.
