Belarusian MPs adopt controversial state budget for 2019


The main financial document of the year – the state budget for 2019 — was adopted in the first reading without taking into account possible compensation for Moscow’s fiscal maneuver.

Pensioners will surely be satisfied. As usual in election years, in the next year, the state will increase pensions for as much as 14%. State workers will receive 9% more money. All this can be found in the social security fund draft approved the other day and the draft budget for 2019. All in all, the main financial document was prepared in a hurry and without heated discussions.

The price of oil in the budget is 60 dollars per barrel. The potential compensation for the so-called fiscal maneuver with the Russian oil was not taken into account. It is about 310 million dollars in damages. And then there’s $ 3 billion more to cover foreign debt servicing.

“Just 2 years ago, the government said that 10% was the threshold, above which it is dangerous to give funds from the national budget of the country. This is linked to the country’s security. And next year we already paying 26% of the budget,” economist Leanid Zlotnikau said.

Returning of debt will require to direct resources the budget had partially used in the past.

“… To make ends meet, it is necessary to borrow about $ 1 billion from Russia (it is calculated) and they are seeking another $ 1 billion,” Zlotnikau said.

In terms of the purchasing power, the budget will decrease. The projected inflation rate (5.3%) is more than four times the main indicator of economic growth (1.2%) — the GDP. At the meeting before the adoption of the expenditure plan for the following year, the head of state Alyaksandr Lukashenka reassured the people:

“There is absolutely no reason to worry! This is the problem of the country’s leadership that we have to solve. Even in the worst case scenario — nothing will collapse. As for the 2019 — there’s nothing to talk about.”

But what’s next? By 2025 Belarus will switch to the purchase of oil at market value and lose the revenues from export duties on oil products … losses of up to $ 12 billion will be felt by every one of us.

Yulia Tsyalpuk, belsat.eu

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