The government has approved limits on transfers to the regions from the Federal budget

Prime Minister of Russia Dmitry Medvedev signed a decree according to which sets a limit on the level of co-financing from the Federal budget to the regions, the document published on the website of the Cabinet.

«To approve the maximum level of co-financing expenditure obligations of the Russian Federation from the Federal budget to constituent entities of the Russian Federation for the year 2018 and the planning period of 2019 and 2020 years», — stated in the message.

It is noted that the decisions will allow the Federal Executive authorities and regional authorities to determine the amount of co-financing in the provision of subsidies for 2018-2020.

The average varies from 70% to 90%. The lowest level of co-financing from Moscow: 5% for all three years. In second place — Yamalo-Nenets district (14%).

Another government resolution amended the rules of formation, granting and distribution of grants in the region of the methodology of calculation of the maximum level of co-financing. According to the document, as the base will be used the levels of estimated budget sufficiency of subjects for the current fiscal year. It is also envisaged the possibility of establishing the level of co-financing from the Federal budget exceeding the maximum level, but not more than 99%.

The existing rules for the formation and allocation of transfers to the regions for use as a base for calculation of marginal levels of co-financing levels of estimated budget sufficiency of the regions concerned in the next financial year. It is noted that, in practice, this approach complicates the procedure prompt approval of the chief administrator of Federal budget funds with the subject.

In February Russian Finance Minister Anton Siluanov said that the Finance Ministry will soon submit to the government of the Russian Federation proposals on the procedure for the establishment of maximum levels of co-financing from the Federal budget of expenditure of the regions.

It was proposed to distinguish two categories of regions based on the level of fiscal capacity. For regions that do not reach the average level of budget sufficiency, the share of co-financing from the Federal centre will range from 70% to 95%. For regions in the second category — with a level of security above average — share of co-financing from the center will vary from 5% to 70%.