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  1. Pupils atpublic and municipal secondary institutions and primary vocational educationalinstitutions (27.9%)
  2. Veteransof labor (22,2 %);
  3. Employees of the Home Front during the Great Patriotic War (12,9%);
  4. Disabledadults and children (8,6 %);
  5. Childrenunder 3 (4,6 %);
  6. Militarypersonnel and those dismissed from the military service on the beneficialgrounds and members of their families (including the staff of the InteriorMinistry) (4,5 %);
  7. Pupilsin public school from the families with at least three children (2,4%);
  8. Residents (employed) in the territory of a zone with a special,beneficial socio- economic status (1,89 %);
  9. Children under 6 from the families with at least three children (1,69%);
  10. Participants in the GPW (1,51 %);
  11. Membersof the families of perished (defunct) invalids and participants of the GPW andveterans of military operations in the territories of other countries(1,19);
  12. Invalidsof GPW and veterans of military operations in the territories of othercountries (1,1 %)

These categories of the population enjoypermanent social benefits – as long as the factors that determined their status are inplace. Most likely, they will remain main groups enjoying the general statesocial support system in the future.

The data on various benefits andsubsidies extended to different categories of the population in compliance withthe current federal law is represented in Table 1. It should be noted that thedirect count of the total amount of financing from regional or local budgetsrequired to provide for the established benefits is quitecomplicated.

First of all, the very access to certainsocial benefits and services per se (to those provided in-kind) to asignificant extent is determined by the recipient’s residence: the choiceis consistently reduces as long as the transition from alarge industrial center towards the level of a small city- Oblast center andfurther to the municipal establishment of a lower level.

In addition, for example, theexistence of numerous categories of passengers whoenjoy the respective benefits leads to the growth in municipalorganizations’indebtedness towards transportation companies. As a result, the overallvolume of transportation, i.e. sufficiency in terms of provision of therespective. services to all the categories of consumers, falls. In the housingsector, the non-payments on the part of municipal organizations (covering 70% of their expenditures at the expense of budgetary funds) entailthe fall in the volume and quality of their services ( cuttingoff hot water supply, reduction in electricity supplies to the housingsector)-in other words, the bigger is the volume of obligations in termsof declared subsidized or free benefits, the less the actual volume of servicesreceived by all the consumers ( including those not included in anysubsidized category in the respective sector). It also appears complicated toestimate financial obligations that proceed from the priority provisionof benefits ( housing) or services (e.g., installation of the individualtelephone set). The dispersion in terms of expenditure on theprovision of medicines and medical services for the subsidizedcategories is also considerable- especially in terms of estimating expenses onpurchasing medicines.

The evaluation of the data of regionalbudgets under the Social policy item shows that the expenditure structure isunstable, fluctuates sharply annually, and that is determined by the politicalsituation and even has a seasonal nature. For example, the proportion ofexecution of the financial mandate in terms of paying children subsidiescan fluctuate ( annually and quarterly) within the range between 20 to 60 percent). In springtime, the proportion of subsidies allocated to railwaycompanies to maintain low tariffs for suburb commuters increases, whilepayments to pensioners usually grow sharply in the course of electioncampaigns.

The general lack of funds to fulfillobligations meeting the federal standards leads to the general imbalancein the structure of resources allocated for the social protection of thepopulation in favor of bigger expenditures on transfers of funds in favor ofproviders of socially significant services. Thus, the evaluation of socialexpenditures in the budget of the city of St. Petersburg in 1999 shows that thetotal volume of budgetary funds allocated to pay compensations for discounts onthe cost of suburb railway commuter services and telephone networksservices provided to selected categories of residents makes up RUR2.58bln. ( a. USD 100 mln.). The money is transferred in favor of the Oktyabrskayarailway and Petersburg telephone network. At the same time, the needypopulation (with the income below subsistence level) received only RUR.M410 ( or 6 times less) through subsidies and housing subsidies. Hence, thebulk of the funds evaporates in the budgets of service providers. In addition,the services that are provided to all categories of residents with no exceptionare also subsidized. The households, which do not fall into the category ofthose in dire need, are more active in using both the suburban transport andtelephone services.

In compliance with the currentlaw, the same household at the same time may become a recipient ofa great number of various kinds of social aid and benefits. The overallvolume of such a support provided through various channels can hardly becontrolled, let alone sensibly limited. Many categories-based benefitsare extended automatically, and they are not related to the amount of othersocial benefits and payments.

In practice while carrying outfinancial evaluation of the federal mandate, one has to assess both minimaland maximal values, though both of them are, to a significant extent, quiteconditional.

Table 1.2

The list of main categories of residentseligible for benefits and types of the respective benefits


The list ofcategories of the population eligible for benefits


Types of benefits

Invalids of

Families of

Participants in the

Refugees,

Children-

Former troops-

Heroes

Victims of

Handicapped persons

Families with

Persons suffered from

Handicapped


WW II

Defunct military personnel

WW II

Compulsory migrants

orphans

internationalists

Of the USSR, RF, heroes of theSocialist Labor

Politicalrepressions

Istgroup

IInd group

IIIrd group

Children

Radiation, liquidators of nucleardisasters and residents of contaminated zones

children

1

2

3

4

5

6

7

8

9

10

11

12

13

14

I. Housingand related benefits

1.House rental payments

1)50% of house rental payment together with their family members

2) Excessive living area (up to 152) – a regular payment

1)50% of house rental payments to those who receive pension for the lost

2) Excessive living area (up to 152) – a regular payment

3) maintenance of benefits to the widow ofthe former invalid of WW II

-

-

-


) 50% of house rental payment together withtheir family members

2) Excessive living area (up to 152) – a regular payment

1) 50% of house rental payment

1) 50% of house rental payment

1) 50% of house rental payment

1) 50% of house rental payment


1) 50% of house rental payment together withtheir family members

-

2. Payment forheating, water, gas and electricity supply

1) 50% of house rentalpayment together with their family members

1) maintenance ofbenefits to the widow of the former invalid of WW II

-

-

-

-


1) 50% of the costs

1)50% of the costs

1)50% of the costs

1)50% of the costs

1) The discount not lower than 30% to the families with atleast three children

1)50% of the costs

-

3. Fuel costs ( forthe housing without central heating)

1) 50% together withtheir family members

1) maintenance ofbenefits to the widow of the former invalid of WW II

-

-

-

-


1) 50% of the costs

1)50% of the costs

1)50% of the costs

1)50% of the costs

1) The discount not lower than 30% to the families with atleast three children


-

4. Loans for individual house construction

1) Paying off during 10 years ( staring from the 5th year upon the completion ofconstruction)

-

-

-

-

1) No interest


No interest




1) No interest (families with at least threechildren)

1) No- interest loans ( 50% of those paid bythe federal budget)


5. Charging interestfor the use of loans for individual house construction and capitalrefurbishment

1) No interestpaid)

-

1) No interestpaid)

-

-

-








-

6. Credits forthe purpose of settlement and construction materials

-

-

-

-

Long term creditsunder beneficial terms







1) Privileged ( for families with al least threechildren)


-

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