MINSK, 23 February (BelTA) – The measures to optimize and reduce consolidated budget expenses in 2016 have been specified in Belarus. This is envisaged in Decree No. 78 “Concerning the measures to enhance the effectiveness of the social and economic sector of the Republic of Belarus” which was signed by Belarus President Alexander Lukashenko on 23 February, BelTA learned from the press service of the Belarusian leader.
The Council of Minister, oblast executive committees and the Minsk City Hall have been instructed to take comprehensive measures to optimize and reduce consolidated budget expenses in Belarus in 2016. The priorities for reducing expenses are enumerated in the document.
These include expenses on subordinated capital investments (the purchase of equipment and other fixed assets, capital construction projects, renovations and major repairs).
Plans have been made to reduce expenses on the maintenance of state administration bodies, local authorities and self-administration bodies through the optimization of their functions and the number of personnel at all levels. The funds obtained after this optimization will be used to increase civil servants' salaries.
It is also planned to reduce expenses on the repayment (compensation) of interest rates on Belarusian ruble loans which are or have been issued within the framework of national programs and events (except for housing construction loans).
Expenses on transfers from the national budget to the consolidated budgets of regions and the budget of Minsk will be reduced as well.
The government, oblast executive committees and the Minsk City Hall were also instructed to take comprehensive measures to minimize negative consequences from the increase in consumer goods prices after the budget consolidation measures are taken. The consumer price index should not rise by more than 3.7%.
It is also needed to take comprehensive measures in the tax policy aimed at the restoration of fiscal revenues and the reduction of dependence on the external demand for raw materials.
Heads of state administration bodies and other organizations subordinate to the government, heads of oblast executive committees and the Minsk City Hall have been instructed to focus on the reduction of expenses on the purchase of raw materials and parts abroad, maintenance of the administrative apparatus, renunciation of long-term capital investments in the non-production sector, including by tapping into foreign currency sources.
