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In 20022003 Ministry of industry and science carried out inventory of scientific organizations. According to inventory data the number of institutions in the sphere of science went up 1.5 fold during the last decade. Public funds are mainly allocated not on public institutions but on federal public unitary enterprises. Thereby, for the sphere of science Russias science in numbers: 2003. Statistical collection. Moscow. TSISS, 2003, p. 79.

reformation of federal public unitary enterprises remains as urgent as the restructuring of budgetary institutions network.

Funding of the sphere of science is carried out from several sources:

federal budget, budgets of the subjects of the Federation, extra budg etary sources, and other sources in accordance with Russias legisla tion.

Government financing of budgetary institutions in the sphere of sci ence is traditionally carried out through ministries and agencies as well as through academies of sciences with public states. Ministries distrib ute considerable share of funds within target programs.

Analysis of budgetary classification demonstrates that current form of distribution of expenses by lines does not give a clear idea about the amount of budgetary funds allocated on just budgetary scientific institutions.

There are practically no scientific institutions, which are funded only from budgetary sources. The share of science funding from extra budgetary funds is very high in higher education establishments. The role of business sector in funding research and development is very low in comparison with corresponding indicators in developed countries.

Thereby, available quantitative data on budgetary network in the sphere of science breaks down into two groups. One includes informa tion on scientific organizations mainly by sectors of science, the other on directions of budgetary allocations according to adopted budgetary classification where allocations on budgetary scientific institutions can be estimated only approximately. Inventory of scientific organizations did not change the state of affairs. Its findings are incomparable with the official statistics data. That is why, their combined application is not correct. RF Goskomstat gathers information on organizations that carry out research and development, and inventory touched organizations with a status of scientific organization.

1.4. Culture and arts 1.4.1. General characteristic of public institutions network of culture and arts Starting with 1990 cultural institutions network evolved in different directions. Total number of libraries, recreation facilities and commu nity centers was falling but the number of theatres and museums, on the contrary, was growing. From 2000 on the whole quantitative indica tors of the public cultural institutions network did not change in com parison with 19901995 indicators34.

By the end of 2002 public institutions network in the sphere of cul ture and arts in the Russian Federation constituted:

Professional theatres 571 (of which 71 were opera and ballet thea tres, 328 were the drama and musical comedy theatres, 159 were the puppet and young peoples theatres);

Concert organizations and independent philharmonic groups 263;

Circuses 64;

Museums 2,189;

Public libraries 51,000;

Sociocultural institutions (palaces of culture, clubs, rest centers and so on) 54,20035.

Table Development indicators of cultural institutions 1990 1995 2000 2001 Theatres 382 470 547 556 Theatre attendance 375 213 212 214 (per 1,000 persons) Museums 1315 1725 2047 2113 Museum visits (per 1,000 persons) 971 509 505 516 Total no. of libraries (in thousands) 62.6 54.4 51.2 51.2 51.Total no. of library readers 487 407 7101 7109 (per 1,000 persons) Community centers (in thousands) 73.2 59.9 54.8 54.8 54.Number of seats in community centres (per 90.4 74.6 N/a N/a N/a 1,000 persons) Source: Russian statistical yearbook, 2003.RF Goskomstat. Moscow, 2003.

Russian statistical yearbook, 2003: Summary statistical compilation. RF Goskomstat.

Moscow, 2003.

Russia in numbers, 2004: Summary statistical compilation. RF Goskomstat. Moscow, 2004 ., Social state and standard of life of Russian population, 2003: Summary statistical compilation. RF Goskomstat. Moscow, 2003.

Number of theatre attendance, number of museum visits per 1,persons in 1995 were considerably lower corresponding indicators for 1990. At the same time, during 19901995 number of readers in public libraries went down insignificantly. The number of book in the libraries went down insignificantly too. Later on there was a stable trend of grow ing indicators characterizing museum visits down to 2002. Growth of theatre attendance was posted till 2001. However, it was insignificant and in 2002 it went down and turned out to be below 1995 level. The number of library readers went up 17 fold by 2002 in comparison with 1995.

1996 year Number of theatre goers per 1000 of population Number of museum visits per 1000 of Number of books in the public libraries per 100 of population (year end, copies) Newspaper circulation per 1000 of population (one-time circirculation) Source: Calculations made on the data of statistical compilation Russian regions. Socio economic indicators, 2003. RF Goskomstat. Moscow, 2003.

Fig. 6. Development indicators for the sphere of culture in Russia during 1990Regarding Russian regions differentiation by culture development indicators, we can underline that in this sphere there is a high level of differentiation in comparison with health care service delivery indica tors, as was noted in corresponding chapters of the report. Average theatre attendance in the country amounts to 170 theatregoers per 1,000 persons per year. Standard deviation from this number by re gions constitutes about 59 per cent. In case of museums average an nual number of visits per 1,000 persons of a region constitutes 400, standard deviation of the number of visits constitutes about 107 per cent. Practically all Russian regions post greater number of museum visits than the number of theatregoers. One of the reasons for this situation can be lower price of museum tickets in comparison with thea tre tickets36.

In 2002 Vladimir, Novgorod, Yaroslavl and Vologda regions posted the highest number of theatregoers and museum visits Number of visi tors and theatregoers per 1,000 persons). This situation can be ex plained, first of all, by the presence of well known museum complex in those Russian regions. Naturally, Moscow and St. Petersburg posted the highest number of theatregoers and museum visits (this indicator for St. Petersburg by far surpasses the Moscow one)37.

The majority of culture and arts institutions are in local jurisdiction and are funded from the local budgets. Museums, organizations of the performing arts, large libraries are regional jurisdiction and are funded from the budgets of the subjects of the Russian Federation38. In 2003 in federal jurisdiction were 247 institutions, which receive appropriations from the federal budget under a subsection Culture and arts. Financ ing issues in the sphere of culture and arts will be examined in more de tail later on.

1.4.2. Financing of public institutions network of culture and arts From 1992 public funding of the sphere of culture and arts was con tracting, and became insufficient to guarantee public institutions per formance in full and preserve the former level of availability of their ser vices for the population. In comparison with 1990 level the consolidated federal budget expenditures on culture, arts and mass media con tracted by 20 per cent (2002 level). The lowest level of federal funding Russian regions. Socio economic indicators, 2003: Summary statistical compilation.

RF Goskomstat. Moscow, 2003.

Ibidem.

Chernets V.A., Chirikova A.E., Shishkin S.V., et all. Financial aspects of reforming social sphere (Scientific papers 60). Moscow, IET, 2003.

was posted in 1998 (47 per cent of 1991 level)39. Beginning in 1999, public expenditures on culture and arts starts growing in real terms40.

100 86 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Source: Calculated from RF Goskomstat data using GDP deflators, published after the expiration of a corresponding year (1992 17.2; 1993 10.2; 1994 4.1; 1995 2.8;

1996 1.4; 1997 1.2; 1998 1.1; 1999 1.6; 2000 1.4; 2001 1.2; 2002 1.2).

Fig. 7. Dynamics of the consolidated budget expenditures on culture, arts and mass media (1991=100%) In 2003 funds appropriated under the RF consolidated budget for culture and arts constituted 56.2 billion rubbles or 4.8 per cent of the consolidated budget spending on sociocultural events41. About 78.4 per cent of these funds were appropriated under the subfederal budgets (major share of these funds (78 per cent) were directed to cover main tenance costs of these institutions. This situation is easily explainable because the majority of budgetary institutions in the sphere of culture and arts (the same in health care system) are in regional or local juris diction and that is why main burden falls to the subfederal budgets).

During last several years the level of funding of culture and arts un der the subfederal budgets did not undergo considerable changes. For example, in 2000 regional budgets appropriated nearly 82 per cent of RF Goskomstat.

Calculated from RF Ministry of Finance and RF Goskomstat.

Russia in Numbers, 2004: Summary statistical compilation. RF Goskomstat. Moscow, 2004.

expenses on culture and arts, in 2001 79.5 per cent, in 2002 80.per cent.

About one fifth of the overall amount of public funds on culture and arts are appropriated under the federal budget. Beginning in 2000, fed eral budget expenditures in this sphere constantly grew. Moreover, be ginning in 2001 the volume of funds appropriated under the federal budget for culture and arts increased 2 fold (from 6,733,971 thousand rubbles in 2001 up to 16,101,176 thousand rubbles in 2004.) Similar to the distribution of subfederal budgets funds, major share of the federal budget appropriations for culture and arts constitute ex penses on the maintenance costs of the institutions of culture and arts.

About 2.5 per cent of funds are allocated for circuses, 1216 per cent of funds represent target expenses on different programs (it should be noted, that in these expenses major share is assigned for institutions.) Over half of the federal budget appropriations for culture and arts are included in section Departmental spending on culture and arts, first of all, on maintenance costs of very important objects of cultural heritage of the peoples of Russia and support of museums. Twenty thirty per cent of budgetary funds are allocated for support of theatres, concert organizations and other performance arts organizations. For the implementation of the federal target program Culture of Russia (20012005) (approved by the RF Government Decree on 14 Decem ber 2000 No. 955) in 2001 the federal budget appropriated about per cent and in 2003 and 2004 12 per cent of the overall volume funds appropriated for culture and arts. Main share of these funds is directed at the implementation of the program Development of culture and preservation of Russian cultural heritage. Major share (81.3 per cent) of federal budget funds appropriated for culture and arts was distributed through the related ministry (Ministry of Culture of Russia). The spending structure of this ministry on culture and arts on the whole is identical to the structure of corresponding fed eral budget expenditures, which was described above. About 78per cent of expenditures of Russian Ministry of Culture were directed for maintenance costs of the institutions of culture and arts, about 3per cent for circuses funding, and 1418 per cent for target program financing (major share of these funds is allocated under the federal tar get program Culture of Russia (20012005). At the same time, in lat est years funding under the program contracted from 17.9 per cent of total expenses of the ministry in 20012 down to 14 per cent in 2003.

Major share of spending (6268 per cent) is included in section De partmental expenditures on culture and arts mainly on maintenance costs of very important objects of cultural heritage of the peoples of the Russian Federation, museums. About 1520 per cent of funds are di rected for government support of theatres, concert organizations and other performance arts organizations.

Regarding remaining major users of budgetary funds in the sphere of culture and arts, The State Academic Bolshoi Theatre of Russia was allocated about 7.9 per cent, Chancellery of the President of the Rus sian Federation 5.34 per cent, State Hermitage 4.35 per cent of to tal funds appropriated under the section culture and arts. The rest users of budgetary funds42 appropriated for culture and arts received less than one per cent of the overall volume of federal budget funds ap propriated for these purposes.

Lately extra budgetary receipts from main activity of the institutions of culture and arts, from commercial realization of unrelated types of goods and services were growing. However, the share of extra budget ary funds in the overall revenues of the institutions of culture remains relatively low about 1030 per cent43. For individual institutions of cul ture and arts this indicator can be very high and for other relatively low. According to budgets analysis of 226 federal institutions of culture and arts submitted by the Ministry of Finance of Russia indicator share of extra budgetary funds in 2003 varied considerably for different types of institutions: from 73 per cent for Grand St. Petersburg State They are: Russian Federal Archive Service, State Committee of the Russian Federation on Construction and Housing and Utility Complex, Russian Academy of Sciences, Sibe rian Department of the Russian Academy of Sciences, Ministry of the Russian Federation of Communications and Information, Ministry of Education of the Russian Federation, Russian Agency on Common Armaments, Ministry of Industry, Science and Technology of the Russian Federation, State Committee of the Russian Federation on Physical Culture and Sports, Russian Academy of Education, Ministry of Finance of the Russian Federa tion, Federal Service of the Russian Federation on Hydrometeorology and Environment Monitoring.

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