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Economy
26 September 2016, 13:29

Prerequisites for economic growth in Belarus draft budget for 2017

MINSK, 26 September (BelTA) – Belarus' draft central state budget for 2017 enables prerequisites for economic growth. Belarusian Finance Minister Vladimir Amarin made the statement in an interview with the TV channel Belarus One, BelTA has learned.

The Finance Minister described the draft budget for 2017 as a budget of macroeconomic stabilization. “The general concept of the prepared documents — the social and economic development forecast, the major monetary management guidelines, and the draft budget — is to enable prerequisites for transition to economic growth,” remarked Vladimir Amarin. The budget has been compiled bearing a conservative scenario of the economy development in mind. “The approach will allow avoiding the reduction of spending if some macroeconomic indicators are below the expectations,” explained the official.

In his words, the breakdown of the budget's expenses per industry has been preserved. The document provides for spending more on healthcare, education, culture, and science. Plans have been made to more than double appropriations for forming family capital. In comparison with 2015 the appropriations will exceed $200 million.

The limited availability of budget resources will encourage more effective spending. “Despite the limited availability of budget resources the draft budget for 2017 honors all the social commitments of the state,” said Vladimir Amarin. “In particular, those include support for families with children. Plans have been made to transfer the necessary resources to the social security fund in order to make sure that the ratio of the average pension against the average salary stays at least as high as 40%.”

Unlike the state budgets of previous years the budget for 2017 is careful about oil prices, added Vladimir Amarin. “In 2016 we expected oil to cost $50 but, in point of fact, it will cost roughly $41 on average this year. This is why the careful forecast will allow us to keep the budget stable through the next year,” he explained.

The draft state budget for 2017 has a surplus of Br1.5 billion. The Finance Minister underlined that the surplus is not a reserve to tap into, it is nothing like spare money. The money will be used to repay debts, mainly external state debts. “The surplus will cover 25% of the payments. We intend to borrow the rest on the financial market,” he concluded.

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