Expenditures on implementation of Law on Veterans – 4,000 million rubles (2 percent); FRR (1.7 percnet);
–
3,335
million
rubles
FRRF (0.3 percent);
–
600
million
rubles
FK (18 percent)
– 33,381.6 million rubles
The intergovernmental fiscal relations were reformed anew in 2001, when Resolution No. 584 of the RF Government of August 15, 2001 (in the wording of Resolution No. 51 of the RF Government of February 6, 2004) approved a Program for Reforming Budget Federalism in the RF till 2005. under the Program amendments and new provisions were eventually introduced to the budget and tax codes and laws on local government (Law No. 131-FZ of October 6, 2003) and on the executive government authorities (Law No. 95-FZ of June 7, 2003). The Program provided for the distribution of tax powers and revenue sources, the distribution of expenditure obligations and the correction of the system of intergovernmental fiscal relations between budget levels. The establishment of the Federal Fund for Co-Financing Social Expenditures (FSSR), which began functioning in 2002, became a new departure in intergovernmental fiscal relations; its purpose was to encourage RF subjects to support the provision of basic public services at a certain level. The FSSR funds are to be disbursed to all the RF subjects without exception for co-financing priority socially meaningful expenditures (primarily expenditures on education, health care, culture, social security and social aid to the population) depending on compliance with certain conditions. As a matter of fact, the fund was primarily aimed at co-financing those social expenditures which were introduced by federal decisions, but were to be financed out of re72