Implementation of Administrative and Budget Reforms on Local level (in the selected municipality)

This project is an integrated part of the main CFP program supported by USAID that is Reform of Intergovernmental Fiscal Relations and Public Finance Policy in Russia  


Within the framework of this particular project the CFP will assist the selected municipal district (rayon) or city district (okrug) in developing of fiscal policy on local level. These include:


• draft mid-term strategic plan of socio-economic development of the municipality and its incorporation into mid-term financial plan,


• preparation of the reports of the subjects of budget planning of the municipality on results and general directions of activities,
RRGDA – the document that each budgetary entity shall draft and submit to the upper level. This procedure was established by the bill # 249, May 22, “On measures towards increasing efficiency of budget expenditures”


• development of a List of Expenditure Obligations of the municipality,


• improvement of the procurement procedures on local level,


• development of a system of monitoring of government performance,


• restructuring of budgetary sector,


• improvement of administrating procedures,


• improvement in coordination between executive and representative power institutions,


• enhancement of civil society role in budgetary process.


The CFP will develop selection criteria to select a municipality as a pilot site.

ON-GOING

March 2007: The CFP selected the city of Ussuriisk (Primorsky Krai) and the city Petropavlovsk-Kamchatsk (Kamchatskaya oblast) as pilot sites for the project.

April 2007: The CFP and administrations of the pilot municipalities have localized the project objectives and specified deliverables for each pilot municipality. Besides this, the CFP will conduct training seminar for those municipalities that participated in the tender.

The agreed objectives include:

The city of Ussuriisk:

Objectives:


  1. Development planning on the basis of (1)realistic estimation of the city budget capacity and (2) monitoring & evaluation of government performance.
  2. Strengthening cooperation between departments of the city administration.

Deliverables:


  1. Training in development of municipal targeted programs within the framework of the mid-term city development plan.
  2. Assistance in preparation of the reports on results and general directions of activities of the subjects of budgetary planning (RRGDA).
  3. Assistance in development of the list of expenditure obligations.
  4. Training of the members of local self-government bodies in the basic financial planning.
  5. Assistance in the development of indicators to monitor public services delivering.
  6. Training of the professionals and members of self-governments of the city okrug.

The city of Petropavlovsk-Kamchatsk:

Objectives:


  1. Improvement of the system of transfers between the subject of the Russian Federation and (1) federal budget and (2) local budgets.
  2. Improvement of quality of public services in Education in the city. 3. Incorporation of the methods of performance-based budgeting in the budget process on the city level.

Deliverables:


  1. Assistance in calculation of the transfer normatives for the (1) federal - regional budget transfers and (2) regional - local budget transfers.
  2. Assistance in improvement of the system subsidies provided from the regional budget to the local budgets.
  3. Assistance in calculation of the per capita normative of financing of general school education in the city.
  4. Assistance in increasing effectiveness of the use of subsidies provided by the regional budget to the local budgets.
  5. Assistance in development of the standards for the public services in pre-school education.
  6. Assistance in incorporation of the city development plan to the budget process.
  7. Assistance in preparation of the RRMDA for the pilot budgetary sector.