OREANDA-NEWS. December 12, 2011. In 2012 Belarus’ export of commodities and services should be increased by 11-12%, Prime Minister of Belarus Mikhail Myasnikovich told an expanded participation session of the Council of Ministers Presidium. The session tabled refined drafts of the social and economic development forecast, the state budget and the major monetary management guidelines for 2012, BelTA has learned.

The head of government remarked that the forecast documents are balanced, targets have been corrected to ensure an increase in gross indicators only via intensive factors. “It is the key peculiarity of the draft forecast: output can be increased only if the materials consumption and energy consumption are reduced while export is increased,” said Mikhail Myasnikovich.

The targeted export and foreign trade balance figures are the most important factors for balancing the entire forecast. The targets are really tough. The foreign trade surplus should be about USD 1.5 billion while the export of commodities and services should increase by 11.6-12.3% upon the high base of the current year, said Mikhail Myasnikovich. Without accomplishing it it will be impossible to preserve the key conditions of macroeconomic balance. Production growth cannot be accompanied by the growth of the finished goods inventory. Everything that is made should be sold, stressed the Prime Minister.

He said that some executives waste efforts on explaining why they cannot hit the forecast targets instead of seeking ways to do it. For instance, the petrochemical concern Belneftekhim suggests setting a zero level for the materials consumption target. The approach is inadmissible, stressed Mikhail Myasnikovich.

Mikhail Myasnikovich added that the Belarusian state food industry concern Belgospischeprom, the light industry concern Bellegprom, and the forestry and paper industry concern Bellesbumprom had failed to achieve this year’s export growth targets. Instead of reducing materials consumption the Agriculture and Food Ministry and the Architecture and Construction Ministry have increased it. The limit of emission-based lending remains unchanged – Br7 trillion at most. Other resources for development purposes should be earned or attracted, said the head of government.

Belarus GDP in 2012 is to be formed mainly by net exports, Deputy Economy Minister Alexander Yaroshenko told the Council of Ministers Presidium.

In his words, the country should post trade surplus of USD 1.3-1.5 billion next year. It means the export should increase by 11-12%. “We will be able to redress the balance of merchandise trade once we sell 65% of the total output overseas,” Alexander Yaroshenko said. As a result GDP growth will be secured mostly by the net export. At the same time the aggregate domestic demand will stop exceeding GDP as it was in the previous years.

Internal sources are seen as a foundation for GDP growth. “An efficient use of all the domestic production and material resources will make up the basis for growth next year,” the official said. The effort should aim material intensity reduction in industrial manufacturing. “We believe this reduction will ensure 1.3-1.4% value added growth without an increase in the production output,” Alexander Yaroshenko said. With this, the reduction of material intensity of the gross output might reach 0.8-1%.

Belarus’ budget revenue is expected to make up Br141.8 trillion next year, Finance Minister of Belarus Andrei Kharkovets told the Council of Ministers Presidium session.

Analyzing the finalized draft budget for 2012, the minister said that the consolidated budget revenue will make up Br141.8 trillion, or 27.8% of GDP. Additional Br2.9 trillion was included in the draft after the macroeconomic forecast had been revised.

Andrei Kharkovets added that the recent amendments to the budget increased revenue by factor corresponding to the GDP growth of 105.2% instead of the previously planned 101.5%. In line with the President’s instructions, the abovementioned additional revenue is not distributed across budget expenditure articles but is concentrated in relevant reserve funds. “This will help level off the risks of fiscal obligations exceeding their actual funding. Thus, the principle of the balanced budget has been preserved,” the minister said. Deficit-free budget is expected next year, he added.

The approaches to reform the tax system of the country in 2012 which were previously approved have been retained in the draft budget. Next year the profit tax will be reduced from 24% to 18%, the system of accelerated depreciation will be expanded and a mechanism for transferring losses to future periods will be introduced. “These measures will help us reduce the tax burden on the economy in the amount of 0.4% of GDP,” informed Andrei Kharkovets.

Measures are also planned to simplify tax administration in Belarus, adapt the tax rates to the new price terms, reduce the tax burden on small and medium-sized businesses, and stimulate the production of high-tech goods.

The draft budget has been finalized in part of additional taxation of unused assets. The tax on incomplete construction objects, regardless of whether the payer is in the middle of new construction, has been doubled. The land tax on the land plots with incomplete construction objects has been increased two times as well.