Finance Ministry proposes to grade regional governments by economic growth

Russia's Finance Ministry is proposing to assess the performance of regional governors and regional government agencies based on the growth of Gross Regional Product (GRP).

"I believe we need to establish a KPI, a target for governors, for Russia's regions - GRP growth," Finance Minister Anton Siluanov said at a meeting of the State Council.

He recalled that the Russian president has set a target for the federal government to ensure annual GDP growth of 5-7 percent.

"GDP is formed from GRP, so the main job of governors, the government's of Russia's regions is to increase the growth of regional product. If we need to set a target, 5 percent and higher, that's your target for GRP growth. What this will be - investment, growth of services, trade - is up to governors, they will proceed from their specifics," Siluanov said.

Such an assessment of the performance of regional authorities could be used in making decisions on allocating additional financial assistance to the regions, Siluanov said.

"Right now there are certain decisions of the government, the president on allocation of additional financial assistance. Let's make decisions on additional assistance if a governor has achieved 5 percent GRP growth. Otherwise it's easier to get and order [from the prime minister on allocation of additional funding - ed.] and do absolutely nothing about the economy, production growth," Siluanov said.

Prime Minister Dmitry Medvedev supported the minister's proposal. "The idea that was mentioned by the finance minister in regard to GRP growth as a key performance indicator for governors, I think this is absolutely right," Medvedev said.

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