Author: Aleksandr A. Izmestjev, Cand. Sc. (Econ.), Associate Professor of Economics and Business Administration Dept., Baikal State University of Economics and Law

Abstract. The paper deals with the problem of off­budget income generation of forest enterprises due to disposing realizable wood from sanitary cuttings. In conditions of insufficient budgetary funding, about a half of all spending on forestry in Irkutsk oblast is financed at the expense of off­budget income of forest enterprises. The article also discusses negative consequences of forest enterprises (non­profit organizations) conducting de facto commercial activity and its inefficiency. It is suggested to separate the functions of forest management and commercial activity of forest enterprises as a result of restructuring their network by establishing a uniform non­profit forestry organization in the form of an autonomous institution. The author demonstrates the capabilities and advantages of the proposed institutional organization of forest management for the region with high volume of sanitary cuttings that are revealed within the existing legal framework – forest and civil legislation.