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By Janina de Guzman
The Primorsky Krai Duma unanimously passed a 3.9 billion rubles ($630 million) budget for 1998 on June 29. It was the first day of a lively three-day session in which the Duma’s 39 members debated a number of issues, the most controversial being how to fund municipalities to deal with growing social welfare responsibilties and the legality of simultaneouslyserving in an executive and legislative position. Krai Duma chairman Sergei Dudnik defended the budget despite the anticipated 21 percent deficit of 795 million rubles ($128 million ). He said Duma deputies were “very worried” about the deficit, but that it is a vast improvement over the original budget deficit of 40 percent. Primorye’s budget deficit is less than the federal deficit of 26 percent, Dudnik said. The revised budget includes steep cuts, including a 58 million ruble ($9.3 million) cut in health care and a 653 million rubles ($102 million) cut in education. Law enforcement is facing a 22 percent cut of 84 million rubles ($13.5 million). Under new federal guidelines, the krai is turning over responsibilities once overseen by the federal government, such as pensions and children’s benefits, to municipalities. Some deputies said municipalities were not being adequately funded to deal with these new responsibilities. “It’s putting a strain on the [municipalities],” said deputy Igor Krutykh, who alleges that the krai is not doing enough to cut costs. “I’ve pulled up my Zhiguly to this building and I couldn’t park it. There are so many Land Cruisers around here. I don’t see any reductions in the [krai administration].” Vice Gov. Nikolai Sadomsky said the demands of municipalities were excessive under the economic crisis facing the krai. Vladivostok, Nakhodka and Lesozavodsk had asked to retain 100 percent of property tax, 10 percent of income tax and 5 percent of education tax for municipal budgets. Vladivostok and Ussurisk will be allowed to retain 5 percent of excise duty from the sale of liquor and alcohol, he said. Attracting the most debate was a law passed at the previous duma session allowing a person to simultaneously hold executive and legislative offices. Some deputies argued that a person holding the position of mayor and sitting on the city or krai Duma would encourage corruption. Opponents said voters should choose. The federal Duma is considering a law to prohibit this. Krai Duma chairman Dudnik said when the law comes into effect, Primorye will be forced to revise its law. The krai administration is expected to finalize the budget by July 10, which the Duma will review at their July 14-15 session. “The most serious problem remains debts from previous years,” warned Dudnik. The krai is still paying off 1996 and 1997 budget deficits.
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