Upon Putin's request, Finance Minister Alexei Kudrin made a report on the projected 2006 federal budget and a new law on local self-government.
According to the minister, the law could be implemented in half of Russia's regions as early as in 2006. The process could take up to three years for the rest of Russia.
Kudrin said that, initially, municipal authorities would be assigned the responsibility over road repairs, housing and utilities issues and garbage collection, and later would assume control over such major areas as health care, education, etc.
The minister also said the main issue was the salary hike, which would increase the spending by $5.28 billion.
At the same time, the subjects are expected to increase their revenues by 20% and spend the bulk of the additional income on a salary increase, Kudrin said.
The Federal Law on self-government was adopted by parliament on September 24, 2003 and will enter into force on January 1, 2006. It establishes general legal, territorial, organizational and economic principles for the organization of local self-government in the Russian Federation and defines state guarantees for exercising it.
