Russian President Vladimir Putin believes that small and medium business must become a tax basis for local self-government.
Addressing the Congress of Municipal Entities in Moscow on Tuesday, the head of the state pointed out that the main idea behind the new Tax and Budgetary Codes was "to create stimuli for municipalities to expand their own tax basis." "There are a lot of opportunities here," Putin pointed out. In this connection the head of the state spoke about small and medium business, and also the sphere of innovations and services. "These the very segments of the economy to become decisive for the development of the internal market and for an economic growth in the country," said the Russian President.
Putin underscored that financial stability and the efficiency of the work of the municipalities are directly connected with the intensification of the local economic life. "Much depends here on the ability of the local leaders to professionally and zealously run the economy, on their readiness to remove administrative barriers and to open the market not only for representatives of their own region but also for all those who want to realise their business initiative," said the head of the Russian state.
The President pointed out the importance of the development of the principle of a collective leadership and of control mechanisms with the participation of citizens. "Without such contacts with the constituents there can be no really strong, independent and efficient local self-government," said Putin.
He underscored that "only skilled and responsible local power, ensured with resources and transparent, can efficiently solve the problems of the citizens." "We should not forget that this power exists at the expense of the tax payers, and it should be controlled by the citizens," emphasised the Russian President.
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