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More federal money to the richest regions

Putin and the regions

The Russian federal government intends to stimulate the most successful Russian region with additional bonus transfers. This year, a total of 2 billion RUB will be distributed among the top 20 regions.

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Prime Minister Putin in a government meeting today underlined that the government is not trying to dictate the behaviour of the regions. He did however highlight that the cabinet is entitled stimulate efficiency, Kommersant reports.

He did not specify which regions will get the bonus. The money can be spent on whatever the regions find appropriate, the prime minister said.

At the same time, Russian Prime Minister Vladimir in a government meeting today expressed major discontent with the way many regions spend their budget funding. According to the premier, about 440 billion RUB was inefficiently spent by the regions. He also complained about the regions’ long-dragged bureaucracy with regard to the issuing of licenses to new industrial projects, Itar-Tass reports.