Council of Republic adopts draft budget of Belarus for 2006

At its closing session today, the Council of the Republic of the National Assembly of Belarus adopted the draft law “On the budget of the Republic of Belarus for 2006”. Presenting the draft law, chairman of the permanent commission for economy, budget and finances Stepan Pisarevich said, the parameters of the budget allow for rapid economic growth, improvement of people’s welfare and social security. According to him, the budget revenues in 2006 will jump 26 per cent against 2005 to Br25,5 trillion. Tax payments will shape 64 per cent of the budget revenues (including VAT – 18 per cent and excise duty – 9 per cent). Stepan Pisarevich said, the draft budget for 2006 envisages a tax relief equal to 1.3 per cent of GDP. Together with optimization of budget spending, this will enable the economy entities to save about Br1 trillion. The tax relief will be brought due to the abolition of duty levied on maintenance and repair of dwelling and a duty benefiting local dwelling-investment funds. Besides, the rates of the local target duties will be trimmed: transport duty and a duty for maintenance and development of infrastructure. According to Stepan Pisarevich, budgetary expenditures in 2006 will grow by 24 per cent up to Br26,6 trillion. Stepan Pisarevich noted that the new bill cuts down the number of articles and sub-articles of the functional classification of budgetary expenditures tagging them to the main functions and spheres of the state activity. The foresaid amendments seek to increase transparency of operations with budgetary funds, bring the budgetary classification in line with international standards on record and statistics of state finances. The chairman of the profile commission of the Council of the Republic underlined that the budget for 2006 remains to be socially-oriented, which major expenditures go to pay wages. By the end of the next year the budgetary sphere will see wages at the level of USD265. Budgetary expenditures on the socio-cultural sphere, according to Stepan Pisarevich, will make Br12,4 trillion. The bill envisages the budget deficit of Br1,1 trillion /1.5 per cent to GDP/ that is expected to be met by internal /36 per cent/ and foreign /64 per cent/ resources.