MINSK, 4 January (BelTA) - The Belarusian budget has come under pressure amid the pandemic, Belarus Finance Minister Yuri Seliverstov said on the air of the ONT TV channel on 3 January, BelTA has learned.
According to the minister, the Belarusian financial system closed the year 2020 as planned. "We have known since the spring that the pandemic would have had an impact on the budget. It was clear that some sectors had to operate in new environment, and this could not but affect budget revenues. In addition, the government provided a lot of support, which also fueled expenditure. So we have long been preparing for the fact that the budget wold not have been executed within the parameters which were approved," he said.
The minister said that the pandemic puts quite a lot of pressure on the country's budget. "If we consider budgets separately - regional, district and national ones, then we see that each of them is under pressure [by the pandemic]. So-called COVID bonuses to doctors who work in the red zone are mostly paid from the district budgets, and this puts a lot of pressure on expenditures. As for the national budget, the Healthcare Ministry traditionally carries out most of the purchases on a centralized basis. These include purchases of personal protective equipment, medicines, additional medicines, and this is also a burden on the budget," he explained.
Yet, according to the minister, the country's budget is coping with this load. "We have a clear system: when one of the budgets cannot fully generate those revenues to meet spending commitments, it is helped from the budget of a higher level. The goal was to make sure that all primary expenses were financed. So all expenses have been funded in full," Yuri Seliverstov stressed.
In 2021 Belarus will run a budget deficit of about Br4 billion. “The deficit is not critical if there is a source to fund it. We have such sources, otherwise we have not planned it in such an amount. We will increase the spending on healthcare, which is already at about 4.6% of GDP. Some six or seven years ago we were thinking that it would be good to have it at 4% of GDP. It seemed more or less optimal at the time,” the minister explained. Spending on education and social policy will also be increased. “As for the investment program, the spending will be about 20% more than previously planned. With the work underway to complete the infrastructure as part of the NPP construction, more facilities may be built with the use of these funds than in previous years. The decision was also made to finance the first IVF attempt from the budget; the preferential loans for this purpose will also remain in place. The targeted social assistance possibilities have been expanded, with the threshold of need raised,” the minister said.
The finance ministry has repeatedly announced changes in taxation. The minister explained whom they will affect. “We have taken pinpointed measures, and they are about the revision of certain benefits. We have abolished some benefits or revised them in relation to VAT, certain types of food and consumer goods, medications. These are all temporary measures for the period of the pandemic. Considering all sources, these benefits, including VAT, will generate about Br1 billion in the country,” said Yuri Seliverstov.
