Transcript of the beginning of the meeting:

Vladimir Putin: Mr Mironov, as you know, the government has submitted the draft budget for 2011 and the 2012-2013 planning period to the State Duma. After it is debated in the State Duma, the budget will be submitted to the upper house of parliament. But I know that Federation Council members are familiar with its main points and have taken part in drafting the document.

I would like to draw your attention to only a few aspects. For instance, in 2011 we plan to spend 118.8% of this year's figures on national defence, 126.7% on environmental protection, 116.4% on education and 110% on culture and cinematography. The healthcare sector, minus the mandatory medical insurance fund, will receive 108.4% and physical fitness and sports programmes will be allocated 125%.

Representing the regions, the Federation Council frequently focuses on regional interests. In this connection, I would like to say that we are launching a healthcare modernisation programme next year. This will primarily concern Russian regions. The programme provides for the modernisation, reconstruction and renovation of healthcare facilities in the Russian regions, the retraining of personnel, etc. Tremendous allocations are stipulated, totalling 460 billion roubles in the next two years.

But there are less ambitious programmes which, hopefully, the public will also appreciate. These include the creation of regional road construction funds and the direct allocation of 34 billion roubles from the federal budget for road maintenance in regional capitals. This is an obviously attractive project.

I hope that Federation Council members will treat these issues with the attention they merit and work constructively.

Sergei Mironov: Thank you, Mr Putin. Indeed, the Federation Council, the house of the regions, was involved in examining the budget's initial version. We worked with the trilateral commission drafting the budget and, of course, are familiar with many of its parameters.

You have mentioned the creation of road construction funds. To be honest, this has been a chronic headache, as well as a long-term objective of our house. We are happy to know that a federal road construction fund has now been established. We had insisted on this all along. It is also very good that regional road construction funds will be established because there is no alternative but to allocate target funding for road construction and maintenance. We will always be hard pressed for such allocations and will get nowhere without roads.

I must say that the Federation Council will, as usual, assess everything in a constructive and critical manner, primarily in the context of regional interests.

Mr Putin, I represent not only the Federation Council, but also the A Just Russia party. We, too, will assess everything in a constructive and critical manner, and are already doing this. As usual, we are drafting some additional proposals for the second reading of the budget. We will submit them, and I hope that you will also examine our proposals. As usual, we will formalise them as some alternative proposal. I hope that some of our proposals will deserve careful attention.

Vladimir Putin: I have instructed the government's economic bloc, as well as other colleagues and government members, to work constructively with all of the State Duma's political parties, including, of course, A Just Russia.

Sergei Mironov: Mr Putin, I have a request in this connection. Last year, my colleagues, members of A Just Russia, were very happy when Deputy Prime Minister and Minister of Finance Alexei Kudrin delivered a report. This time, he was unable to speak before submitting the budget due to an extremely packed schedule. Now that the State Duma is starting to examine the budget, may I ask you to instruct him to meet with members of A Just Russia? This will be a very useful conversation because many issues will be resolved.

Vladimir Putin: All right, that's agreed then.

Sergei Mironov: Thank you very much.