MINSK, 5 August (BelTA) – In 2020 Belarus' state budget may fail to receive up to Br4 billion in revenues due to the situation with oil and due to the slower economic growth amid the pandemic, BelTA learned from Belarusian Finance Minister Yuri Seliverstov on 5 August.
According to the source, the lost revenues are estimated at about Br3.7-4 billion. Half of the sum was lost due to the situation on the oil market, lower customs duties, and lower volumes of export of oil products. “Apart from that, taking into account the overall economic situation (not only the Belarusian economy but all the economies are in recession) we expect that we will fail to receive slightly more than Br2 billion in revenues from income tax, dividends from state-owned enterprises,” the official said.
The planned budget deficit has been raised from Br900 million to Br2.1 billion. The figure may go all the way to Br5 billion at the end of the year. The finance minister stressed there is nothing extraordinary about it, the move reflects the restructuring of debts of bakery plants to the tune of about Br1.3 billion. Yuri Seliverstov explained that the Finance Ministry has some reserves in Belarusian rubles, which had rolled over from the previous surplus years. The reserves will be used to honor all the commitments as the current revenues go down.
The finance minister pointed out that this year the budget is being executed in conditions of an economic downturn, there had been problems due to the unfavorable epidemic situation in Belarus and the main trade partners of the country. Apart from that, there were certain difficulties in the operation of the petrochemical industry in H1 2020 due to efforts to straighten out oil deliveries.
All the risks are concentrated at the level of the central state budget. It is good for budgets of the regions where social commitments are concentrated, Yuri Seliverstov specified.
In January-July 2020 the deficit of the central state budget amounted to Br1.4 billion. Revenues totaled Br12.8 billion, with expenses at Br14.2 billion.
Revenues were Br1.5 billion below last year's figure. The budget received the planned sums from excise duties (Br1.7 billion), VAT (Br5.8 billion), export customs duties on potash fertilizers (Br883 million).
The state budget failed to get the planned sums from export customs duties on oil and oil products (Br175 million or 13% of the target), profit tax (Br260 million or about 18%), and dividends (Br216 million or about 21% of the targeted amount). The economic downturn had a direct effect on revenues from dividends and the profit tax, the finance minister explained.
“At present all the expenditure commitments, primarily social ones, are honored in full,” Yuri Seliverstov noted. Among other things the budget honors commitments concerning the payment of salaries, transfers to the population (welfare, scholarships, and pensions).
About Br0.5 billion was spent on fighting the coronavirus. The sum mainly includes disbursements to medical workers and social workers.
According to the Finance Ministry, about Br1 billion in expenses will not be financed this year taking into account the fact that many events have been cancelled and the Tokyo Olympic Games have been rescheduled. Warm weather helped reduce the cost of utilities. Less money was spent on food in schools due to the introduction of distance learning.
