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Russia's special-purpose investment fund could receive Rub 35-37 bln ($1.2-1.3 bln) in 2007 (More) Russia's July international currency reserves jumped 6% or $15.1 bln, to reach $265.6 bln. These figures were shown in a press released posted on the web site of the Central Bank of Russia. (More) Cash surplus was 8.7% of GDP in January-June, 2006. (More) Russia's foreign trade surplus was $86.2 bln in H106. (More) FSB and Defense Ministry to Develop Kuriles (More) On July 4-6th, 2006 the working trip of Minister of economic development and trade of the Russian Federation G.O.Gref to Kingdom Netherlands took place (More) |
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News about Russia 
News / 30 March 2006. G.O. Gref delivered a speech "On federal goal-oriented programmes and federal targeted investment programme implementation in 2005" |  |
| 30 March 2006. Minister of Economic Development and Trade of the Russian Federation, G.O. Gref delivered a speech “On federal goal-oriented programmes and federal targeted investment programme implementation in 2005” at the meeting of the Government of the Russian Federation On federal goal-oriented programmes (FGOP) and federal targeted investment programme (FTIP) implementation in 2005 Results of FGOP and FTIP implementation in 2005 Dear Mikhail Ephimovich, dear Government members, In 2005 there were implemented 53 federal goal-oriented programmes ( Slide 2 ) approved by the Government. Within those programmes there were implemented 84 sub-programmes. The consolidated aim of programmes implementation was to solve key problems facing our country, i.e. reforms of the Armed Forces and judicial system, development of the agricultural sector and transport infrastructure, reduction of gaps in social and economic development of different regions and suppor of economic sectors with high scientific potential. Programmes financing has increased more than 1.5 times compared to 2004 and has accounted for 319.6 bln roubles. State investments in programmes implementation have increased by 139 bln roubles, R&D investments - by 11.7 bln roubles. Financing per programme has increased from 3.55 to 5.8 bln roubles. Federal targeted investment programme financing accounted for 252.4 bln roubles in 2005 (Slide 3), including 184.2 bln for the programme part, that amounted for 73% of total volume of investments. Also in 2005 there was significant increase of expenditures in infrastructure and industrial spheres that accounted for 123.1 bln roubles. 80.5 bln roubles were spent on social projects. A total of 3471 construction projects were financed through the federal budget, of which 855 projects were put to operation (607 in full and 248 to the capacities of the start-up systems). Thus funds were successfully concentrated on key objects and start-ups. In the two recent years average financing per project has increased almost four times while number of federal targeted programmes and sub-programmes has decreased one and a half times. Funding of federal targeted programmes and non-programme part of federal goal-oriented programme has increased by 69,9% compared to 2004. (Slide 4). Hence the following significant results have been achieved (Slide 5): - freight turnover in railway sector has increased by 16,5%, passenger turnover of air transport - by 19,3%, transhipment volume at sea ports - by 12%; - construction and reconstruction of several federal roads segments have been completed, as well as reconstruction of 5 runways; - 18 thousand state housing certificates have been issued, more than 17 thousand people have been rehoused from slum and dangerous dwellings, about 30 thousand flats have been provided for young families; - gas supply has been provided for about 550 localities, water supply - for about 300 localities; - 10 major cultural objects have been reconstructed (including Bolshoi Theatre, the Kremlin museums, Moscow Art Theatre named after A. Chekhov, "Petergof" museum-reserve); - reliable control and functioning of orbital group of 39 scientific and socioeconomic satellite vehicles has been established, 2 manned and 4 cargo spacecrafts have been launched; - 180 scientific researches have been conducted and 125 technologies have been developed either up to the world standards or higher; - total fuel and power resources saving has accounted for 24,7 mln tons of fuel equivalent; - total gain in crop production has accounted for 11,7 mln tons of grain equivalent. Total area of 173,0 thsnd ha. has been covered by melioration measures; - effectiveness of general jurisdiction and arbitration courts has increased. Most important construction projects put to operation in 2005 are presented on the following slide (Slide 6). These are: - IRB-1M reactor (Lutkarino); - Achalukskaya mini hydro-power plant and Yakutskaya state district power station; - high and low pressure gas pipe lines in Krasnodar region; - «Kazan» airport, Republic of Tatarstan; - Moscow State University fundamental library; - segment of «Baikal» road. In the passed year we managed to break the trend of persistent programmes underfunding and achieve the stage when programmes and projects are financed in full provided that target indicators, set by the Government of the Russian Federation, are met. Major problems What problems are still outstanding? 1. First of all, it is major programmes differentiation . In the second half of 2004 - first half of 2005 regulatory environment for preparing and carrying out federal goal-oriented programmes and federal targeted investment programme has been significantly updated. All new or updated programmes fully comply with new requirements in clear statement of their targets and tasks, available internal and external control mechanisms, introduced indicators of phase-by-phase meeting the target. That means, as I have already said, that such programmes should be financed in full provided that target indicators are met. At the same time there exist several previously approved programmes, which also should be brought in line with new requirements with the aim of their updating, compulsory introducing target indicators and indexes, verifying list of activities, sources and volume of financing. However, this work undertaken in accordance with resolutions of the Government of the RF has been disrupted 15 running federal goal-oriented programmes, which are not completed in 2006, still have not been updated. (Slide 7) Out of which five programmes have not been updated by the Ministry of Regional Development of Russia. Ministry of Information Technologies and Communications of Russia, Ministry of Transportat of Russia, Ministry of Industry and Energy of Russia are updating the programmes unjustifiably long. However, this problem would be solved in the near future. Tomorrow, the 31 st of March is the deadline for programmes correction set by the instruction of the Government of the RF as of the 9 th of March 2006 (? MF-P13-899). According to this instruction, programmes, which have not been updated, are not included in the list of federal goal-oriented programmes for 2007 as non-conforming with regulatory requirements 2. Analysis of federal goal-oriented programmes implementation in 2005 revealed another problem: low level of programmes co-financing through extrabudgetary funds as well as through budgets of constituent members of the Russian Federation. In 2005 part of state contractors failed to attract the above mentioned funding within the scope defined when the programmes were approved (Comment 1) . Financing of federal goal-oriented programmes through federal budget considerably increased (by 67.0%) in 2005. However, volume of financing through budgets of constituent members of the Russian Federation and extrabudgetary funds (6,2%) didn't increase correspondingly. Ministry of Regional Development of Russia and Ministry of Public Health and Social Development of Russia didn't attract extrabudgetary funds for carrying out the whole range of programmes' activities at all, although those funds were included into indicators approved by the Government of the Russian Federation (Comment 2) . The situation resulted in additional burden on the federal budget to provide for carrying out planned programmes' activities in full. 3. The next key problem is introduction of comprehensive, reliable and timely reporting on the programmes . The lack of adequate reporting didn't allow fulfilling the main principle of goal-oriented method, i.e. making a list of federal goal-oriented programmes and federal targeted investment programme and defining the scale of their financing depending on achieved results. According to the procedure approved by the Government, state contractors are to submit state statistical reports to the Federal State Statistics Service and annual and quarterly reports to the Ministry of Economic Development and Trade of Russia. Reports on federal goal-oriented programmes in 2005 were submitted to the Ministry of Economic Development and Trade of Russia with considerable delays. Before the deadline set by the Government - the 1 st of February - there were submitted only two reports (Comment 3) . In certain cases materials lacked objective data required to evaluate effectiveness and actual results of programmes implementation. (Slide 8). Data format developed by the Ministry of Economic Development and Trade was not maintained, recommendations on report preparing were not followed. The Federal Industrial Agency, Federal Agency for Construction, Ministry of Agriculture, Ministry of Industry and Energy, Ministry of Regional Development have not submitted data for 2005 required by the state statistical reporting on federal goal-oriented programmes implementation. 16 out of 83 ministries have not presented reports on federal targeted investment programme implementation for 2005 on time. Among those are: Ministry of Industry and Energy, The Federal Industrial Agency, The Federal Service for Supervision of Nature Resource, The Federal Air Transport Agency, The Federal Agency for Rail Transportation, Ministry of Information Technologies and Communication, The Federal Communications Agency, The Federal Agency for Information Technologies, The Federal Service for Insurance Supervision, Foreign Intelligence Service, Federal Agency for Special Construction, Federal Migration Service, Federal Security Service, Supreme Court, Federal Service for Technology and Export Control, Federal Registration Service. 13 ministries and agencies accounted not for the full amount of allocated funds. Among those are Ministry of Finance, which accounted only for 6% of funds, Ministry of Defence - for 7%, Ministry of Regional Development and Federal Bailiffs Service - for less than 20%, Federal Atomic Energy Agency, Ministry of Civil Defence, Emergencies and Disaster Relief, Ministry of Internal Affairs, Federal Guard Service and Federal Service for Hydrometeorology and Environmental Monitoring - for around 30% (Slide 9) . In the reports on investment projects implementation major part of state contractors didn't provide comprehensive data on sources and volume of funding by each construction project, on executed works and on number of objects put to operation. Out of allocated funds 2.2 bln roubles were underspent that accounts for about 1% of the total volume of federal targeted investment programme including funds that were transferred to be invested in 2006 according to the article 74 of the federal law "On federal budget for 2006". This sum includes (Comment 4) : - 800 mln roubles underspent on the programme «Modernisation of the transport system of Russia» (construction and reconstruction of runways in «Sheremetyevo» and «Pulkovo» airports and airports of Gelendzhik, Ulan-Ude, Astrakhan, Barnaul, Tomsk, Perm, Kaliningrad, Murmanks). - 267 mln roubles underspent by the Federal Atomic Energy Agency and the Federal Industrial Agency at several military-industrial objects; - 800 mln roubles underspent on non-programme part of the federal targeted investment programme by Federal Agency for Construction, Federal Agency for Public Health and Human Services, Federal Agency for Education, Federal Agency for Water Resources. Underspent funds for construction of the second stage of Mariinsky Theatre accounted for about 330 mln roubles out of allocated 1.2 bln roubles. 4. Work on establishing ongoing monitoring of federal goal-oriented programmes and federal targeted investment programme implementation, which is conducted according to governmental instructions, is actually being disrupted by the state contractors . Volume and content of monthly and quarterly reports, submitted by the state contractors is insufficient for evaluation. Thus, despite repeated reminders out of 18 state contractors-coordinators the report on progress of federal goal-oriented programmes implementation for January 2006 has been submitted only by the Ministry of Civil Defence, Emergencies and Disaster Relief of Russia. It doesn't allow creating the system of gathering proven data on programmes implementation for the quarterly report at the meetings of the Government of the Russian Federation, first of which is scheduled for the 1 st of June. Quarterly effectiveness indexes of the ongoing programmes and corrected target indicators for 2006 are being unacceptably slow submitted by contractors for approval. Provided materials are not specific and often don't correspond with those approved for federal goal-oriented programmes (Slide 10) . In 2005 state contractors failed to perform this work. Thus, financing of programmes in 2006 started without due "feedback" - contractors' responsibilities to meet specific indicators during the year. By now quarterly breakdown of target indexes and indicators for 2006 has been approved by the Ministry of Economic Development and Trade for 24 programmes out of 50 that are financed in 2006 (Comment 5) . Thus, performing quarterly efficient control and effectiveness evaluation of federal goal-oriented programmes implementation is not feasible at the moment. Ministry of Economic Development and Trade has repeatedly addressed state contractors with regard to speeding up correcting of ongoing programmes, approving target indexes and indicators for 2006, preparing of new programmes. Thus, since October 2005 until February 2006 each ministry and agency - state contractors of federal goal-oriented programmes - has received about 15 letters and telegrams regarding these issues. In September I held an extended meeting with all heads of federal governmental authorities, where we discussed programme instruments of reform realization, their major specific features and requirement they should comply with. Ministry of Economic Development and Trade has conducted several seminars devoted to "management by objectives" method application. Guidance materials for preparing annual reports were sent two months prior to the deadline, but all undertaken measures failed to break stagnancy of state contractors. Development of new programmes Some of the state contractors do not fulfil instructions of the President and Government of the Russian Federation on preparing new programmes for the year 2007. (Slide 11 ). Deadlines set by the Procedure of federal goal-oriented programmes development are disregarded. Ministry of Public Health and Social Development of Russia: draft programme "Development of resort business in Russia" has been submitted to the Ministry of the Economic Development and Trade four times (from April 2005 to March 2006) and the materials are still being revised. The draft of federal goal-oriented programme "Children of Russia" was submitted to the Ministry of the Economic Development and Trade in July 2005 and the process of resolving comments (target indicators are not specific) has lasted until March 2006. Draft programme "Prevention and control of socially significant diseases" was submitted in December 2005 and in March 2006 and both times it was returned for revision. Ministry of Regional Development of Russia prepares drafts of new programmes unjustifiably long and resolves comments too slowly. As a result none of new programmes has been approved by now ("South of Russia in 2007-2011", "Socio-economic development of the Chechen Republic in 2007-2011", "Socio-economic development of Kuril Islands (Sakhalin region) in 2007-2015"). Similar situation exists in Federal Atomic Energy Agency (programmes "Development of atomic industry and energy complex of Russia in 2007-2010 and further until 2015", "International Termonuclear Experimental Reactor ITER. Participation in construction" for 2007-2016", "Nuclear and radiation safety of Russia" for 2007-2010). Ministry of Education and Science of Russia has submitted draft of federal goal-oriented programme "Scientific and technological base of Russia" to the Ministry of Economic Development and Trade three times. The resource part in this document is not sufficiently proved, target indexes and indicators and their numeric values do not correspond with indicators, stated in the Development strategy of science and innovation of the Russian Federation. Ministry of Industry and Energy of Russia has submitted draft of the new programme "Energy-efficient economy" to the Ministry of Economic Development and Trade three times (starting from September 2005). At the moment the project is being revised. Ministry of Industry and Enegy has not yet finalized draft resolution on completion of the current programme "Energy-efficient economy". The list of federal goal-oriented programmes to be financed in 2007 is already being composed and its main parameters are being defined. The Committee within the Ministry of Economic Development and Trade of Russia has started to review preliminary budget applications for programmes financing. The Committee includes representatives from Ministry of Finance and Ministry of Education and Science. State contractors' proposals on the list of investment and R&D projects, works in the sphere of "other needs were analysed and the level of their preparedness and priority was assessed at Committee workshops held with participation of independent experts. In the cause of application considering when defining financing parameters the results of formal programmes assessment were also taken into account. The assessment process was initiated in 2005 according to the instruction of the Government and will be continued onwards. State contractors included in their reports for 2005 original data for evaluation, as well as their own assessment of achieved results. Conclusions and suggestions As of today the problem of underfunding of new federal goal-oriented programmes, which fully comply with regulatory requirements is solved. The key task now is to provide for full enforcement of updated regulatory environment and to increase the quality of state contractors' work within the frames of this environment. The suggestions are the following (Slide 12) : 1. To unfailingly follow the principle defined in the Instruction of the Government of the Russian Federation of the 9 th of March 2006 (? MF-?13-899r), and to include in the list of federal goal-oriented programmes for 2007 only those programmes and sub-programmes, which fully comply with regulatory requirements, including on programmes updating and reporting standards. 2. To oblige the Ministry of Economic Development and Trade of Russia to prepare suggestions on cutting in 2006 financing of uncorrected ongoing programmes as well as of programmes, for which revised quarterly effectiveness indicators have not been approved for 2006. 3. State contractors should provide for attracting funds of constituent members of the Russian Federation and extrabudgetary funds for federal goal-oriented programmes financing within the scope defined when the programmes were approved. 4. Together with considering budget application for financing of federal goal-oriented programmes in 2007, revised target indexes and indicators for 2007 should be approved. 5. The Ministry of Economic Development and Trade of Russia should continue the practice of formal assessment of federal goal-oriented programmes implementation, including with the help of independent experts. 6. State contractors should immediately provide for fulfilment of previous Government instructions on updating of ongoing programmes, developing of new programmes and preparing due reports. 7. In order to improve procedure of developing and implementation of federal targeted investment programme aimed at end result, any proposal to include newly started construction projects in the programme should be considered only after financing of start-ups and continued projects are provided for. 8. In order to broaden powers of budget planning subjects and major federal budget administrators it is necessary to introduce amendment for the clause 3 of article 79 of the Budget Code of the Russian Federation and to increase threshold cost of federal construction projects liable for considering and approving in accordance with the procedure set for federal goal-oriented programmes financing, from 200 000 minimum monthly wages to 3 000 000 minimum monthly wages (300 mln roubles). | |