National News

Belarus approves fiscal program for 2019-2021

Belarus’ medium-term fiscal program for 2019-2021 was approved by Council of Ministers’ Resolution No. 149 on 6 March 2019, BelTA learned from the government.

The program defines basic parameters of economic development and major monetary indicators, debt ceiling, major national budget parameters and expenditure ceilings for government programs in 2019-2020 (excluding the funds of the National Central Innovation Fund in 2019).

The program projects the gross domestic product at Br129,386.4 million in 2019, Br146,003.9 million in 2020 and Br159,097.5 million in 2021. The GDP is expected to increase by 2.1% in 2019, 2.5% in 2020 and 2.8% in 2021. The refinancing rate is projected at 10% at the end of 2019, 9.5% at the end of 2020 and 9% at the end of 2021.

The average midterm consumer price index growth is projected at 5.3% in 2019, 5% in 2020, and 4.5% in 2021. The exchange rate of the U.S. dollar against the Belarusian ruble will make up Br2.268 by late 2019, Br2.326 by late 2020, and Br2.386 by late 2021. For budget planning purposes the oil price has been defined at $60 per barrel in 2019, $55 in 2020, $50 in 2021.

The debt-to-GDP ratio is set at 45% within the next three years.

The budget surplus is expected at Br1.7 billion in 2019, almost Br1.4 billion in 2020 and Br1.15 billion in 2021.

The fiscal program will be implemented taking into account some fiscal policy measures. The tax burden on the economy should not exceed 26% of GDP. The government will preserve the standard deductions from the national taxes to budgets of all levels, limit the national budget expenses in order to generate the surplus to repay part of the debt, and pay not less than 25% of the debt commitments in a respective fiscal year from non-tax sources.

The program provides for the reduction of budget participation in all forms of state support of real economy sector by not less than 10% per year in 2019-2020.

BELARUSIAN NEWS