Page 25 - BELRptFeb19

BYN 0.7bn plan.
Belarus will run a BNY1.7bn ($800mn) budget surplus according to the 2019 budget bill , the chairperson of the Standing Commission on Budget and Finance at the House of Representatives Lyudmila Dobrynina told BelTA on 18 December. Budget revenues will make up BNY23.7bn ($11.2bn), expenditures Br22bn ($10.3bn).
The government consistent efforts to raise salaries – Belarus president Alexander Lukashenko set a target of BYN1,000 ($470.6) per month on average which has been achieved -- will be continued throughout 2019.
The budget was almost in balance in December 2018. Fitch's measure of general government balance (consolidated government including Social Protection Fund and off balance sheet expenditure related to guarantees and financial sector transfers) is estimated to have recorded a near-balanced position at -0.1% of GDP in 2017. This estimate incorporates a consolidated government surplus of 2.4% of GDP reflecting a combination of revenue growth derived from higher oil prices and a more dynamic economy and continued expenditure restraint.
Fitch expects the general government to record low deficits of 0.8% and 1.2% of GDP in 2018 and 2019, respectively, reflecting lower surpluses at the consolidated level plus potential cost related to the materialisation of guarantees, banking sector capitalisation and the asset clean-up process. We forecast the "augmented deficit", which includes off-budget programme lending - adding to government debt - to be a little higher at 1.8% of GDP in 2018.
6.1.1 Budget dynamics - tax issues
The general tax burden can be eased by scrapping individual tax preferences for economic operators, Belarus' Minister for Taxes and Duties Sergei Nalivaiko told the Belarus 1 TV channel on 6 January, BelTA reports.
The minister noted that preferences are usually meant to give an impetus to a company growth. Unfortunately, it often happens that a company gets hooked on these preferences and starts begging for and even demanding them, he said.
“Therefore if we take another look at individual preferences and scrap some of them, and level the playing field for all economic operators, we will certainly find reserves to reduce the general tax burden,” Nalivaiko noted.
25 BELARUS Country Report February 2019 www.intellinews.com