OREANDA-NEWS. December 10, 2009. The House of Representatives of Belarusian Parliament has adopted the draft law, On National Budget 2010, in the first reading.

Presenting the bill, Finance Minister of Belarus Andrei Kharkovets noted that in 2010 revenues of Belarus’ consolidated budget are expected to total Br53 trillion, or 30.4% of GDP. The main sources of tax revenues of the consolidated budget are the VAT, foreign trade revenues, income and profit taxes paid by legal entities, income tax paid by individuals and excise duties.

In 2010 expenses of the consolidated budget are projected to equal Br55.7 trillion, or 31.9% of GDP.

In 2010 revenues of the state budget are expected to make up Br35.6 trillion (up 20.7% from 2009), expenses — Br38.2 trillion (up 23.5% from 2009).

According to Andrei Kharkovets, the government will abolish the duty to the national fund to support agricultural producers, food and agrarian science, a tax on acquisition of a vehicle, local taxes on retail sales and parking in order to simplify the tax system of Belarus.

To compensate for the drop in budget revenues, the VAT will be raised from 18% to 20%, which will generate additional revenues of Br1.7 trillion.

Speaking about the expenditures Andrei Kharkovets said that the 2010 budget is socially-oriented. A total of Br41 trillion will be allocated for these purposes. One of the main goals of the expenditure policy is to preserve the current level of social services, strengthen existing social guarantees and support of the real production and implement housing construction programmes. Thus, over Br3 trillion is set aside for housing construction (subsidizing the interest rate, financing of infrastructure facilities, subsidies to large families, one-time subsidies). The real production sector will be granted the government assistance worth Br830 billion.

Spending on healthcare, education culture, sport and social policy will increase. In 2010 expenditures on education will amount to Br76 trillion (up 7%), healthcare Br5.6 trillion (up 7%). Expenses on wages of employees of the budget-financed sector and scholarships will increase by 8-9%.

Belarus’ budget deficit for 2010 will make up Br2.7 million, or 1.5% to GDP. The deficit is expected to be financed through internal and external sources.

According to Andrei Kharkovets, the draft budget takes into account all the potential risks, which can create obstacles to the budget implementation, first of all in terms of revenues. During the formation of the budget obligations for 2010, the officials applied such approaches that will allow extending these obligations if the budget revenues increase. This will make the budget well-balanced and sustainable to the external risks. It can be promptly adjusted to the economic changes in Belarus, the Finance Minister said.