OREANDA-NEWS. October 9, 2008. The next year’s budget bill has passed its second reading in the House of Representatives of the National Assembly of Belarus, with the deficit as high as 1.8% of the GDP.

In 2009 revenues of Belarus’ consolidated budget are expected to total Br72.7 trillion or 46.9% of the GDP. The main sources of tax revenues of the consolidated budget are the VAT, foreign trade incomes, income and profit taxes paid by corporations, income tax paid by individuals, and excise duties.

In 2009 expenses of the consolidated budget are supposed to equal Br75.5 trillion or 48.7% of the GDP. Next year the budget expenses will be mainly channelled into ensuring the growth of salaries in the public sector, financing of national priorities set by the social and economic development programme, provision of the necessary resources for extra budget expenditures in view of the growing prices for the energy resources Belarus imports.

In 2009 revenues of the central state budget are supposed to make Br54.9 trillion, expenses — Br57.7 trillion. The deficit of the central state budget is estimated at Br2.8 trillion or 1.8% of the GDP. The budget deficit will be financed using domestic resources (Br2.4 trillion) and foreign ones (Br0.4 trillion).

Belarus’ social sphere will receive Br42 billion from the state budget or over 60% of the expenses of the country’s consolidated budget. A large part of the money will be used to ensure the targeted salary growth. By late 2009 salaries are supposed to reach an equivalent of USD 550, by late 2010 — USD 700.

The next year budget apportions more money for main social expenses (healthcare, education, culture, physical culture, sport and others). On the whole, these expenses will increase by more than 35% in comparison with 2008 while the total budget expenses will go up 26%.

The healthcare funding is supposed to total Br6.5 trillion (35% up). Annual increases in healthcare funding allow assimilating state-of-the-art treatment methods, buying contemporary equipment for medical institutions. For example, over Br500 billion has been allocated for buying medical equipment in 2009 or 60% up on 2008.

In 2009 physical training and sport funding will exceed Br580 billion (almost 33% up).

Education funding is supposed to make Br8.8 trillion (36% up). The money will be primarily used to build up the resource base of educational institutions.

There are plans to apportion around Br900 billion for culture and arts, including the re-equipment of cinema studio Belarusfilm.

A major increase in support for Chernobyl-affected areas is a peculiarity of the next year budget, with Br758 billion apportioned for this purpose. Another Br257 billion will be used to extend gas distribution, water supply, build roads in these regions.

Br1.7 trillion has been earmarked for housing construction, primarily financial aid for young and large families, who build new homes. Over Br860 billion is meant to be used to create engineering and transport infrastructure in the housing estate.

Belarus’ food security will be ensured via comprehensive support for agriculture. All in all, Br4.5 trillion will be used as aid to the Belarusian agribusiness. The money will be used to buy mineral fertilisers, insure crops, and finance agrarian science.

The 2009 budget will finance 61 state programmes for a total of Br10.6 trillion.