In Kudrin's opinion, reform of the budget process will improve living standards in the country.
He said that the first experiment with ministries and departments reporting under the new principle to streamline the proposed mechanism has been held. Ministries and departments having many non-specific institutions have been detected, he said. "They do not meet the main goals and functions set them by the state", the finance minister said.
There also budget institutions having their own large non-budgetary earnings.
About 10,000 of them, 100-percent financed from extra-budgetary sources but ranked as budget-earners, have been discovered, Kudrin said.
In this connection, the financing of institutions must be improved in keeping with the prices and the register of budget-earners specified.
Kudrin also said that the federal target programmes will also be specified and broken down according to the departmental target programmes. "The whole process of financing must switch over to target-programme planning", he said.
The budgets of ministries and departments "will be divided into the earlier-assumed-obligations budget and the newly-assumed-obligations budget", Kudrin said.
