Belarus budget deficit expected to run at 1.9% of GDP in 2008

In 2008 Belarus consolidated budget will total Br50 trillion 160 billion. Budget expenditures will amount to Br52 trillion 360 billion, so the budget deficit will run at Br2 trillion 190 billion or 1.9% of the planned GDP, Sergei Kiselev, the chairman of the permanent commission on budget, finances and tax policy of the House of Representatives of Belarus, told reporters on December 12. According to the parliamentarian, the budget will be still socio-oriented. For example, expenditures on the socio-cultural sphere will amount to about Br30 trillion (over 60% of the aggregate consolidated budget expenditures). More than Br11 trillion will be spent on national economy (over 25%), more than Br3.5 trillion – on agriculture, more than Br5.5 trillion – on industry and power engineering and Br2.6 trillion – on transport, road facilities and communication. The budget deficit will rise in 2008 from 1.5% to 1.9% as the Government plans to inject more funds into the national economy development and the industrial base upgrade, Sergei Kiselev explained. “In the future we plan to eliminate the deficit thanks to the incomes generated by industrial companies,” he said. The budget deficit within the limits of 3% of GDP is considered to be normal in the countries of Western Europe, Sergei Kiselev added. The 2008 draft budget takes into account the future advance in prices for the Russian energy carriers, the Belarusian MP stressed.

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