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5. The procedures in question should alsoprovide legal relations between the respective offices, ministries and entitieswith the RF Ministry of Finance along with their heads’ responsibility for the targeteduse of funds from the budgets of different tiers of the national budgetsystem.

The reforming of transport benefits forso-called social beneficiaries is a far greater challenge, due to their bignumber and different grounds for the provision of such benefits. At the sametime, the general principle of implementation of the beneficial ride shouldbecome uniform for all the categories - the respective travel document. Thetravel tickets (according to certain standards) may be issued by the socialprotection agencies, or they may become subject to further compensation.Another mechanism of ensuring the residents’ beneficial ride could be theprovision of them with a targeted monetary allowance whose amount shouldensure, according to the standard, a purchase of travel tickets according togeneral procedures/

According to some experts, the normalizationof the situation with beneficial rides at the public transport would raise thecompensation for the sector’s costs up to 40 and even 60% that matches the moderninternational experience in funding the city passengertransportation.

2.2.3 Reforming the benefits in the field ofcommunication services

Currently the benefits related tocommunication services are regulated by 42 legislative acts, in compliance withwhich 33 categories of consumers are eligible for them. The benefits comprisean early and free installment of telephone and a 50% discount on the use oftelephone for some categories of residents and delivery of free mailingservices.

The procedures of financing the said benefitsare fixed in a number of legislative documents: thus, the federal laws OnVeterans, On Social Support of Disabled in RF, On the Status of MilitaryStaff read that the expenditure related to the implementation of benefitsrelated to the payments for communication services are compensated from thefederal budget funds, however, the communication companies not always receivecompensation for the services delivered.

Table 1. 6. Benefits in the field ofcommunication services (data of the Russian Ministry forTelecommunications)

Categories ofresidents for whom benefits in terms of payment for communication services areprovided

The number ofresidents eligible for the benefits

The value ofthe benefits provided, as RUR Th.

Actuallycompensated, as RUR Th.


On payment for theaccess provided

On payment for theprovision of the line for the permanent use

On payment for theaccess provided

On payment for theprovision of the line for the permanent use

On payment for theaccess provided

On payment for theprovision of the line for the permanent use

Disabled ofGPW

23742

322755

47570,2

58809,1

12156,3

7001,9

Participants inGPW

21023

282891

18551,7

72739,71

457,0

13254,3

Currently disabledemployees at the Leningrad enterprises during the blockage period

153

15867

69,19

2751,6

2,0

490,8

Non-able bodiedmembers of the family of the killed disabled or participant in GPW

9282

204356

6994,3

86048,6

17,51

16896,3

Veterans of labor,upon their retirement

37031

3558050

1046,4

614930,8

200,689

68029,8

Veterans of themilitary service

93950

140331

20787,7

15457,83

41,65

539,24

Judges and clerks inthe court

838

9163

107,6

3054,7

47,3

213,22

Disabled

64872

859988

34383,3

187378,6

8603,2

43086,9

Tax policestaff

44

102

30,4

23,2

-

5,12

Currently disabledprisoners of concentration camps and ghetto

433

4974

520,5

962,8

11,4

100,8

The former youngprisoners of nazism

353

12114

270,71

1920,8

60,6

298,27

Heroes of SocialistLabor, and full holders of the Order of Labor Glory

32

2087

272,6

453,3

20,1

205,676

Heroes of the SovietUnion, Heroes of RF, full holders of the Order of Glory

59

2936

40,5

939,046

2,0

146,176

Survived spouses andparents of Heroes or full holders of the Order of Glory

1

1405

3,0

297,609

-

66,04

Militarypersonnel

8557

35509

3542,33

4799,4

62,0

110,5

Members of families ofmilitary personnel

69

3656

23,25

592,25

2,5

244,11

Members of families ofmilitary personnel died in the course execution their missions in theconditions of the State of Emergency in the territories of the Trans-Caucasian,Baltic states and Republic of Tajikistan

3

3494

5,54

675,0

5,54

157,444

Military personnelbecoming disabled in the conditions of the armed conflict in the ChechenRepublic

841

903

387,0

162,46

17,8

13,01

Dismissed Interiorstaff

586

1989

75,2

855,7

-

163,307

Prosecutors

112

1672

42,1

327,8

16,5

46,86

Persons suffered fromrepression

9037

3255

14976,06

3750,1

7893,9

1111,6

Residents, includingdisabled, suffered from the Chernobyl disaster, liquidators and members ofthe families of the died participants in the liquidation of the Chernobylnuclear power plant disaster

8238

96973

4215,973

17843,94

1558,102

3443,44

Total

279256

5564470

153915,5

1074773,35

31176,09

155624,8

In all, during 1999 the benefits providedamounted to over RUR. 1228688.9 Th., while compensations amounted to– RUR 186800.9 Thos.,i.e. 15%.

Recently, the situations have arisen when aconsiderable number of regional communication companies, lacking of thecompensation of costs from the federal budget, decline the requests of therespective categories of residents for the provision of benefits on thepayments for communication services, which generates a great number oflawsuits. Regardless of the availability of compensation from the respectivebudgets, the courts usually render their verdicts in favor of beneficiaries,arguing that the laws that set the benefits are the legal documents of directeffect.

At the same time, in compliance with Art. 50of the Civil Code of the Russian Federation (CC RF) and their Charters, thecommunication companies are commercial entities whose major objective isgenerating profits. In compliance with Art. 213 of CC RF, p.2 Art. 2 of thefederal law On joint- stock companies, the communication companies are ownersof their assets. P.3 of Art. 35 of the Constitution reads that none may bedeprived of his property otherwise than following the court’s verdict. A compulsoryalienation of the property for the state needs may be made only under thecondition of a preliminary and equal compensation.

In compliance with Art. 30 of the federal lawOn communication, the benefits in terms of payments for communicationservices re granted in the event the compensation for the non-received incomesis made from the respective budgets’ funds or by the legalentities introducing such benefits. However, so far the said entitieshave failed to ensure the duly compensation for the benefits.

In compliance with p.4 Art.3 of the federallaw On joint- stock companies, the government and its agencies do not holdany responsibility for a joint- stock company’s obligations, as well as thelatter is not liable for the government’s and its agencies’ obligations. None of thelegislative acts provides the communication companies’ responsibility for the provisionof benefits at the expense of their own funds, as it often happens inpractice.

Hence, the current Russian system oflegislative acts that set the procedures for the provision of benefits to therespective categories of residents leads to the violation of the rights of boththe recipients of social benefits and the commercial organizations that deliversuch beneficial services.

In such a situation, a way to sort thisproblem out would be the new procedures for the provision of benefits on thepayments for communications services. Such procedures would maintain thebenefits: specifically, natural benefits for the respective categories ofresidents set in a form of discounts, should be transformed into monetaryform.

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