http://www.ewi.info/system/files/reports/Modernizing%20Municipal%20Finance%20of%20the%20Kaliningrad%

development of the Russian Federation in the medium term (2005– 2008) had been submitted by federal executive bodies to the government commission by December 20, 2004. The government commission on the enhancement of budget expenditures discussed reports of budget planning entities again in February and March 2005. Conclusions made by the Ministry of Economic Development and Trade for each report were considered. New versions of the reports for the next budget cycle (2006–2008) submitted by budget planning entities drew on the suggestions made by the commission by April 1, 2005.

5. RRMAA experience: results and problems The first stage of the work on reports on results and main areas of activity of budget planning entities created a number of prerequisites for a transition to actual performance-based budgeting. In particular, the main portion of expenditures was presented in the form of departmental target programs. Their development and endorsement requirements are set forth in government Resolution No. 239 of April 19, 2005.

The Regulations on reports used a broader definition of departmental target programs (DTP) (for example, a ‘set of measures identified for analytical purposes and aimed at solving one tactical task’ 16 could be meant as DTPs). This made it possible to distribute a considerable part of expenditures, earlier regarded as off-program ones, among such DTPs. The formalization of goals and objectives of budget planning entities and their performance indicators represented a significant step forward and created prerequisites for more effective and rational distribution of expenditures of budget planning entities among budget target programs. __________ 16 In accordance with the Regulations on reports, endorsed by government Resolution No. 249 of May 22, 2004, a departmental target program is a set of measures (guidelines for using budget funds), endorsed (to be endorsed) by a budget planning entity or identified by it for analytical purposes and connected with the resolution of one concrete tactical task (including the implementation of effective federal laws or other regulatory acts).

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