GOVERNMENT ALLOCATIONS FOR CHECHNYA'S SOCIAL SPHERE RAISED

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MOSCOW, July 16 (RIA Novosti) - The Russian cabinet is going to increase the financing of the federal targeted programme on the restoration of Chechnya's socio-economic sphere by $1.4 billion rubles (about $48 million), Minister of Economic Development and Trade German Gref said at a session on Chechnya's restoration. Originally, 3.5 billion roubles were envisaged for the federal targeted programme.

Gref also said that active efforts were taken to work out a list of specific projects within the federal targeted programme that was due to be considered today and then submitted to the government. Work on compensation payments for lost housing in Chechnya was also conducted, and the schedule of payments has been already considered.

According to Gref, priorities of the programmes on Chechnya's socio-economic restoration - in particular, the revival of schools, hospitals, the infrastructure (water supplies, sewage systems, electric grids), the restoration of roads and bridges - were earlier determined at conferences of the kind. Gref also said that next year housing construction was also due to be launched.

He emphasised that control over targeted budget spending was to be toughened. Moreover, on January 1, 2005 the functions of the state order to restore facilities will be handed over to the Chechen government, except federal facilities.

Since the beginning of next year, the Chechen government, and not federal ministries, will conclude contracts with the state construction commission on the construction and restoration of facilities.

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