The State Duma adopted in the second reading a draft law on agreements on subsidies to constituent entities of the Russian Federation

The State Duma adopted in the second reading a draft law on a new procedure for concluding an agreement between the subject of the Federation and the Ministry of Finance on granting subsidies from the federal budget. The bill was initiated by the Federation Council.

The project was introduced in connection with the change in conditions in a provision of the grant subsidies to regions for equalizing the budgetary security – amendments were adopted to the Budget Code at the initiative of the government at the end of 2016.

According to the members of the Council of the Federation, this norm needs to be relaxed, because grants are an integral part of the budget revenues of the constituent entity of the Russian Federation, in accordance with the norms of the Budget Code.