Good transparency and professional financial managementThe krai’s financial management compares well with its Russian and international peers. Its transparency and disclosure of public finance and debt, including the municipal level, is high. As in all other Russian regions, budgeting is incremental and on an annual basis. In 2007, the krai elaborated 28 programs for the main branches of the economy and public sector, in which it outlined its expenditure needs for the next three years. These needs were incorporated in the financial plan of 2008-2010. Budgeting of revenues remains very conservative, and like other Russian regions is based on the modest forecasts by core enterprises. This is the main reason for deviations of the actual figures away from the initial approved budget figures. Relations with municipal elites are formalized and have improved since interbudgetary parameters were fixed by the krai interbudgetary legislation in 2003. The coordination of plans between companies and the krai is extremely important and implemented through cooperation agreements, as in other heavily industrialized Russian regions. The management of reserves and liquidity has also improved following the introduction of the treasury system, with daily liquidity control proving its efficiency. The krai successfully implemented a special five–year restructuring program for payables accumulated since the 1990s, initially adopted in 2002. Debt management is prudent. Past experience shows that the krai has always fulfilled its debt obligations, even in times of political change and fluctuating performance. The management of government-related entities (GREs) requires more sophistication, however, compared with East and West European peers. That said, the krai has become more transparent in reporting its GREs’ financial performance.
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