Transcript of the beginning of the meeting:

Vladimir Putin: Mr Gryzlov, ladies and gentlemen,

Within several days, on October 10, our country will go to the polls. Six regions will have elections to their legislatures. Dozens of city mayors, district heads and town council members will also be elected. United Russia has candidates running practically everywhere. The party's duty is not merely to retain but also to strengthen its position. I want to say that United Russia has much to demonstrate to the electorate: practical achievements and a programme of action which I regard as explicit and promising.

During the economic crisis, we were capable of consistent, timely and decisive action. We owe this ability solely to strong public support. We certainly need similar support from the United Russia majority in regional legislatures and town halls today to implement our plans and our development agenda.

I would like to focus now on certain problems that need to be solved. They concern millions of people. We are allocating 50 billion roubles on major road repairs in regional administrative centres and we certainly want the money to be spent with the greatest impact. The way it is spent surely depends in many respects on monitoring by members of regional legislatures. The same goes for the work of newly established regional road funds. It is up to town councillors to endorse development programmes of the local road network, make necessary allocations and check up on the results.

Another major project we are launching - you know all about it, we have discussed it more than once - is to modernise healthcare. It primarily involves regional health services, hospitals and clinics, and enhancing personnel proficiency and raising salaries.

The project involves mostly federal money but it will come through regional agencies. So the position of regional parliament members is of critical importance in this matter. What I mean is we will make the grants only for development programmes, as we have agreed, and this means that they should be adopted on time.

Now, allow me to say a few words about our legislative priorities. Endorsing the budget is traditionally the central issue of the autumn session. A few days ago the government submitted the draft federal budget for next year and for the planning period 2012 through 2013 to the State Duma.

You know the difficulties encountered by many economies we describe as developed, the Eurozone being no exception. We can all see what is going on there. The crisis has thrown many countries' public spending out of balance. To reduce the budget deficit, they have to cut vital spending and freeze social programmes. In some instances, our colleagues have been forced to cut wages - I mean direct cuts, not suspending wage increases.

Naturally, we also have deficit problems. However, I think we have found a balance between macroeconomic stability and addressing social issues.

Next year's budget allocated addition money for children's grants, maternity capital, the salaries of federal government employees and the wages of the military and law enforcement agencies, and to improve housing conditions for our veterans and active service members. All this involves huge amounts of money. We started making sizeable allocations like this only just a few years ago. Now, we continue making them as we have agreed upon and promised to the people. We will do so until we solve all problems in these spheres. All these are federal budget obligations.

I am sure that representatives of United Russia, our comrades of kindred spirit in the regions and town halls, will pay special attention to social problems to the extent that they are able to, increase the salaries of regional and municipal government employees, maintain education, healthcare and cultural networks, and step up housing programmes.

Our common agenda includes many other critical initiatives, involving more incentives to modernise the economy, remove administrative obstacles to businesses, and solve other problems of the greatest public concern.

In particular, we must finish work on the draft law on mandatory health insurance before the end of the year. The bill has been passed in the first reading, and the government will be ready with its amendments within a few days. Please don't delay reviewing them. A new version of the legislative fundamentals of public healthcare is also being drawn up.

Another major block of draft laws will consolidate in practice our steps to curb bureaucracy and remove administrative barriers, mainly in the construction industry, agriculture, education and healthcare.

A part of the drafts have already been submitted to the State Duma. Another several drafts will reach it in October and November. We realise that the interests of thousands, possibly even millions of our compatriots are tied up with each of these laws.

On the one hand, these are manufacturers who cannot work effectively following outdated standards - for instance, construction norms and regulations. They encounter all kinds of obstacles and they certainly have every right to demand that the state solve their problems.

At the same time, we cannot allow quasi-liberal legislative changes to reduce the monitoring and control system to zero, which could cause consumers to suffer. Their right to purchase safe, quality goods and services demands reliable protection.

In short, we have much to do. We cannot waste time, so I expect active and dynamic work from our colleagues in the State Duma and in the regions. I am counting on continued progress together on the goals we have set.

There is another practical issue, concerning personnel. Please consult United Russia representatives in the Moscow municipal legislature on mayoral nominations. But we will speak about that separately today.

Boris Gryzlov: Thank you. Mr Prime Minister, ladies and gentlemen,

October 10 will be the second day of the national poll. In March, United Russia received stronger support than at previous elections in regions and municipalities alike. We hope we will get no less support in October because we are good on our word. I think this is the best yardstick for a party. Elections will be held in 75 constituent entities for 50,000 municipal seats and 2,500 mayoral vacancies. It will involve a huge number of candidates, and United Russia alone can make so many nominations. To be precise, our candidates are running for 94% of seats. It is appropriate here to compare our party with all the others. All parties taken together have nominated candidates for a mere 37% of mayoral posts and 31% of town hall seats. So we can safely describe our opposition parties as defeatist. They are already preparing to lose, and ceding the election to United Russia even before the elections begin. I am saying this so that later they cannot accuse us of dirty tricks. They should have nominated candidates and fought.

The ballots in six regions are of crucial importance: they are electing their legislatures. Fourteen regional centres are electing city councils and another two, Makhachkala and Samara, are electing mayors by direct ballot. According to current opinion polls made by sociologists, our candidates are leading everywhere, and we are sure they will have a good result.

As for the main draft law we received yesterday, I have already sent it to the relevant committees to prepare the necessary materials. We have drawn a schedule for budget debates. It will be considered in the first reading on October 20, second reading November 17, and the third and final on November 24. So we hope the bill will be approved by the State Duma as early as November 24. The Federation Council will consider it next. We must say that United Russia cooperated with the government very closely for the zero budget reading. We really stood up for a number of things on which social indicators depend, and we reached an understanding on all these issues.

Of critical importance was the decision to establish the road fund and next year's budget allocations on road reconstruction, including alleys in courtyards. The problem came up a lot when Duma members were visiting towns, and it will be reflected in the budget.

It is also important that we have passed amendments to the Budget Codes on time and supplemented the 2011 budget with several clauses that have become independent now - particularly the clause on funding for basic research. The section on physical fitness and sport will be separate. It was in the section on healthcare previously, and mere 5% of the whole was earmarked for sport. Now, this will be a sizeable sum because it goes as a separate clause. I think it's very important.

Of no smaller importance is the section on interbudgetary transfers.

On the whole, we will support the budget for 2011, 2012 and 2013 because the presidium of our parliamentary group has met already to analyse the budget in the zero reading.

The group intends to meet in a week. We will invite the minister of finance, and he will defend his point before we offer the matter to the plenary meeting.

As for the issues you have mentioned, draft laws concerning healthcare certainly take precedence. We have discussed them as priorities and will handle them as such later on.

The second block you mentioned concerns curbing bureaucracy. Really, a part of relevant draft laws is ready for the first reading, and we expect another package. I think that we will have these laws ready to be passed in the third reading during the autumn session.

Vladimir Putin: Good. Thank you.

Of course, I cannot but welcome such organisational opportunities, and I find them a great benefit to United Russia. I mean the opportunity to run candidates in practically all constituencies and demonstrate the personnel and ideological potential of the party, because when running for an election, one should first of all present his platform and share his plans of regional development with the electorate.

At the same time, we all understand that success depends on efficiency more than on the number. I needn't say any more. Each of our nominees should be able to implement the ideas he advances. Let's all pay attention to this aspect of the matter.