15:49 GMT +319 June 2018
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    BUDGET SECTOR ORGANISATIONS WILL CHOOSE FINANCING SCHEME

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    MOSCOW, April 14 (RIA Novosti) - The Russian government is ready to provide budget organisations with the right to choose the financial scheme, "A number of budget sector organisations will have the right to choose if they want to work on the budget basis, but with stricter state control, or within the new form of budget sector organisations - state specialised non-commercial organisations where the state hold no responsibility for the work of the company, but concludes an agreement with it on a specific result," Finance Minister Alexei Kudrin said.

    He specified that subsidies would be provided to companies for the ultimate result. The companies will be able to plan distribution of acquired funds within their structure.

    This, Mr. Kudrin believes, will increase company leaders' freedom in spending the funds, provided the ultimate goal is achieved.

    Mr. Kudrin added that the state would not be responsible for these companies' debt obligations.

    At the same time, he continued, financing on the basis of the budget will be preserved. The amount of funds will be based on the analysis.

    In 2006, the finance ministry will begin to plan the budget for three years.

    Mr. Kudrin specified that this did not mean the transition from one-year to three-year budget. "We will begin forecasting major budget parameters for the next three years," said the minister. "The formation of the document will not resemble a forecast, but the main budget parameters for three years, which would be co-ordinated in a set order, like the annual budget," he explained.

    Mr. Kudrin described this budget as "the key milestone" for three years.

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