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Putin censures budget spending

      RBC, 08.05.2008, Moscow 14:24:57.The current budget spending system is beneath criticism, former Russian President Vladimir Putin told the State Duma today. He believes Russia has to switch to modern principles of state investment and budget spending.

      Budget funds should do good to the country, rather than be spent in vain, Putin said. For instance, construction projects often cost Russia much more than they do abroad, though energy and labor are cheaper. Behind this, Putin sees not only embezzlement, but also an outdated cost estimation system.

      In addition, public and municipal organizations lack incentives to improve the quality of their services. Therefore, Putin believes it would be reasonable to link the state project financing to specific state orders where necessary. In this case, the authorities and organizations will only be paid for services of adequate quality and scope.

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