Belarus draws up 2021 budget with Br4.047bn deficit – law
<p> MINSK, Jan 4 - PrimePress. The state budget of Belarus for 2021 is drawn up with a deficit of 4.047 billion Belarusian rubles ($1.569 billion at the rate of National Bank of Belarus) based on the planned revenues in the amount of Br23.304 billion ($9.033 billion) and expenditure totaling Br27.351 billion ($10.601 billion), as per the law ‘On Republican Budget for 2021’ posted on the National Legal Internet Portal. </p> <p> </p> <p> A national budget deficit has been planned for the second year in a row. It is expected to reach Br2.6 billion ($1.007 billion) in 2020. The deficit will increase in 2021 by 56% year on year. </p> <p> </p> <p> The deficit will be financed from internal and external sources. Belarus plans to borrow Br1.689 billion ($655m) from external sources and by floating government bonds. Internal sources basically mean the remainder of the budget surplus accumulated in the previous years. </p> <p> </p> <p> Tax revenues are forecasted at Br19.567 billion ($7.584 billion). VAT and excise taxes will account for 57%. VAT is expected to bring Br10.399 billion ($4.031 billion); excise taxes – Br2.942 billion ($1.140 billion), profit tax – Br0.983 billion ($381 million); taxes on foreign trade activities – Br4.033 billion ($1.563 billion). Export duties on oil products and potash fertilizers are also taken into account. </p> <p> </p> <p> Belarus will spend Br13.366 billion ($5.181 billion) on national activities; Br3.722 billion ($1.443 billion) on the national economy; Br2.773 billion ($1.075 billion) on judiciary, law enforcement and security; Br 1.463 billion ($567 million) on national defense; Br1.668 billion ($647 million) on health care; Br2.063 billion ($800 million) on social policy; Br1.291 billion ($500 million) on education. </p> <p> </p> <p> Almost every fifth ruble will be transferred to the regional consolidated budgets, and every ninth on the national debt servicing. The latter will cost Br3.064 billion ($1.188 billion), including Br2.548 billion ($988 million) to service the external debt. Public debt repayment will amount to about Br4.920 billion ($1.907 billion), mostly in foreign exchange. </p> <p> </p> <p> Belarus plans to raise an equivalent of $775 million in foreign markets in 2021 to cover the state budget deficit. According to the Finance Ministry, $500 million will come from Russia as a government loan. Borrowing in the domestic market is planned at $200 million through bond placement. </p> <p> </p> <p> According to the fiscal and tax policy guidelines, the Finance Ministry calculated the 2021 budget based on the following parameters: GDP growth – 1.8%; average annual US dollar exchange rate against the Belarusian ruble – Br2.5678/$1; average annual price of Urals crude oil – $40 per barrel; oil import from Russia for refining – 18 million tonnes; average annual headline inflation – 5.5%; average annual refinancing rate – 7.75-8%. End (Br2.5789/$1) </p>
2021-01-05
Primepress
Belarus draws up 2021 budget with Br4.047bn deficit – law
MINSK, Jan 4 - PrimePress. The state budget of Belarus for 2021 is drawn up with a deficit of 4.047 billion Belarusian rubles ($1.569 billion at the rate of National Bank of Belarus) based on the planned revenues in the amount of Br23.304 billion ($9.033 billion) and expenditure totaling Br27.351 billion ($10.601 billion), as per the law ‘On Republican Budget for 2021’ posted on the National Legal Internet Portal.
A national budget deficit has been planned for the second year in a row. It is expected to reach Br2.6 billion ($1.007 billion) in 2020. The deficit will increase in 2021 by 56% year on year.
The deficit will be financed from internal and external sources. Belarus plans to borrow Br1.689 billion ($655m) from external sources and by floating government bonds. Internal sources basically mean the remainder of the budget surplus accumulated in the previous years.
Tax revenues are forecasted at Br19.567 billion ($7.584 billion). VAT and excise taxes will account for 57%. VAT is expected to bring Br10.399 billion ($4.031 billion); excise taxes – Br2.942 billion ($1.140 billion), profit tax – Br0.983 billion ($381 million); taxes on foreign trade activities – Br4.033 billion ($1.563 billion). Export duties on oil products and potash fertilizers are also taken into account.
Belarus will spend Br13.366 billion ($5.181 billion) on national activities; Br3.722 billion ($1.443 billion) on the national economy; Br2.773 billion ($1.075 billion) on judiciary, law enforcement and security; Br 1.463 billion ($567 million) on national defense; Br1.668 billion ($647 million) on health care; Br2.063 billion ($800 million) on social policy; Br1.291 billion ($500 million) on education.
Almost every fifth ruble will be transferred to the regional consolidated budgets, and every ninth on the national debt servicing. The latter will cost Br3.064 billion ($1.188 billion), including Br2.548 billion ($988 million) to service the external debt. Public debt repayment will amount to about Br4.920 billion ($1.907 billion), mostly in foreign exchange.
Belarus plans to raise an equivalent of $775 million in foreign markets in 2021 to cover the state budget deficit. According to the Finance Ministry, $500 million will come from Russia as a government loan. Borrowing in the domestic market is planned at $200 million through bond placement.
According to the fiscal and tax policy guidelines, the Finance Ministry calculated the 2021 budget based on the following parameters: GDP growth – 1.8%; average annual US dollar exchange rate against the Belarusian ruble – Br2.5678/$1; average annual price of Urals crude oil – $40 per barrel; oil import from Russia for refining – 18 million tonnes; average annual headline inflation – 5.5%; average annual refinancing rate – 7.75-8%. End (Br2.5789/$1)