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Programs for mono-industrial cities must be included in annual budgets - Medvedev

The president said that such investment stimulated business activity and created additional economic benefits

GORKI, September 21 (Itar-Tass) —— Development programs for mono-industrial cities should be considered when forming the federal budget for 2012 and for the longer period of 2013-2014, President Dmitry Medvedev believes.

At a meeting on fiscal policy issues Medvedev said that on the basis of co-financing from the federal and regional budgets there were currently being implemented comprehensive investment plans with the aim to diversify and modernize the economy of such complex structures as mono-industrial cities.

The president said that such investment stimulated business activity and created additional economic benefits.

The head of state recalled that in 2010 such state support with investment programs was extended to 35 single-industry towns, and in 2011 their range was expanded to incorporate another 15 urban areas.

"We need to finalize the prospects for implementing these programs. To analyze what we can do and what we should not do, what really works and what does not," said Medvedev.

In any case, according to the president, "abandoning this topic would be wrong, because we understand how difficult in social terms the situation in mono-industrial cities is and what special measures are required for helping them out of distress."

The president also recalled that at the previous similar meeting on budget issues it was agreed to "conduct a detailed study of a number of budget articles."

As the president said, "it is clear that the priorities remain the same: we need public investment for the success of technological modernization, while at the same time it is obvious everything should be calculated."

"Public investment should be a catalyst for the influx of private investment, not just public money that goes into the development of industries," said Medvedev.

The meeting was attended by the head of presidential staff Sergei Naryshkin, First Deputy Prime Minister Igor Shuvalov, Finance Minister Alexei Kudrin, presidential aide Arkady Dvorkovich, Minister of Regional Development Viktor Basargin, Transport Minister Igor Levitin, and Minister of Economic Development Elvira Nabiullina.

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