Budgets of all levels should be formed on a program principle – the Russian President

The Russian President believes that we can not make a policy based on a formal principle. Announcing his annual address to the Federal Assembly, Vladimir Putin noted that changes in the economic environment were not a reason to review the objectives. The President urged to set clear budgetary and other priorities.

According to the President budgets of all levels should be formed on a program principle for the next two years.

The Russian President said that the increase in wages in public health and education spheres was aimed at making work of teachers, lecturers, doctors prestigious again, attractive to advanced graduates.

“But the decent wages must be provided not solely through budget transfers, but due to the reforms improving the efficiency of spending, and most important – due to the quality of social services for people to see how performance of our schools, universities, clinics and hospitals changes for the better.

Vladimir Putin believes that along with the increase in wages a whole range of other measures should be implemented. Among them, there is a transition to effective contract system and certification of specialists, the introduction of per capita financing, where the benefits are given to those agencies that provide the best quality services. This is development of real competition, opening the public sector for NGOs and socially-oriented business.