UNITED RUSSIA TO BACK GOVERNMENT BILL ON REPLACEMENT OF BENEFITS WITH CASH COMPENSATIONS

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MOSCOW, June 8 (RIA Novosti) - The United Russia Duma faction decided to back the government bill on replacement of benefits with cash compensations, but a number of issues to be settled by the deputies jointly with the government prior to the first reading of the bill remain, Vyacheslav Volodin (United Russia), first vice-speaker of the State Duma, told reporters after the faction session attended by Mikhail Zurabov, the health and social development minister, and deputy finance minister Tatyana Golikova.

According to Mr. Volodin, the deputies do not completely share the concept of the bills regarding the benefit system. In particular, realizing the need to replace some benefits with cash compensations, the deputies speak for giving the people the right to choose, which means that veterans and disabled persons have to make up their minds whether they need paid or free transportation, medicine benefits or extra cash to their monthly pensions.

In his turn, Mr. Zurabov pointed out that the major task of the bill discussion was to understand what positive effect the bill adoption would bring. According to Mr. Zurabov, the primary intent is to reach the level "when an ordinary person could get more from the replacement than from the benefit itself as a result of the reform."

He also stressed that covering the benefits would annually require 170 billion rubles from the federal budget ($1= 29 rubles). In fact, it is five times as much as the calculations required, and eight times as much as was actually spent, concluded Mr. Zurabov.

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