Russian Government to Distribute Budget Funds without Amending the Law

The State Duma adopted a law that expands the government’s powers to redistribute budget funds without amending the law on the budget for the current year, Russian media reported.

The new law empowers the government to take measures to support the labor market. The source of financing can come from the released subventions and subsidies to the regions for the purchase of ambulances and payments to the unemployed.

The government was able to determine the costs of co-financing pensions at the expense of the NWF, depending on the needs of the Pension Fund of Russia (PFR), and to clarify budget expenditures, which depend on the so-called “tied” income.

In addition, the rule on crediting fines for violation of the high alert regime to the budgets of the regions was extended until 2021. Last year, such a measure brought the regions more than 128 million rubles.

The law is now suspended until January 1, 2022, with the norm on the State Duma’s consideration of the law on budget execution to be no later than October 1, which will allow the bill on budget execution for 2020 to be considered in the autumn session of the State Duma.