The recent meeting of Sverdlovsk Region Duma Committee for Budget, Finance, and Taxes was devoted to the legislation on the inter-budgetary transfers regarding subsidizing municipalities’ social welfare expenses. The law was adopted in July 2005 and resulted in setting up a municipal development fund worth 1.28 billion RUR and a regional co-financing fund worth 303.7 million RUR in 2006. However, only 44 out of 72 regional municipalities received subsidies last year; 28 of them failed to get on the list due to budgetary lack of money needed for investment projects or due to failed deadlines. As a result, 13 million RUR remained intact in 2006.

The issue will now be considered by Sverdlovsk Region Duma; the committee will probably suggest that the region’s government should create an ad hoc committee for dealing with the necessary changes in the existing legislation.