“A strategic compass of the state” was how President Putin described strong and powerful local government. He said the goal proved easier to declare than to achieve. The learning had to be done in entirely different conditions, with new and effective mechanisms formed and one’s own experience analysed in the process, which, he said, called for the consent of society, consolidation of power, and political will.
The President said he would sign a decree and directives for the Government soon, aimed at implementing the updated principles of federative relations and local government in 2005–2006.
He also said federal laws would be amended in such a way as to eliminate unsecured financial obligations penciled into regional and local budgets and to help take measures to differentiate between state and municipal property.
The President reminded his audience that the Government had submitted amendments to the Tax and Budget Codes to the Duma, with the general purpose of giving the municipalities incentives to expand their tax catchment areas.
He urged the congress participants to be more active in giving final shape to the Budget and Tax Codes, because real social and economic problems are better seen in the provinces.