Belarus expects recovery growth of economy and start new investment cycle in 2021 – Golovchenko
<p> MINSK, Oct 20 - PrimePress. Belarus expects recovery growth of the economy and the start of a new investment cycle in 2021, Prime Minister of Belarus Roman Golovchenko said at a session of the Council of Ministers held to discuss socioeconomic development forecasts, monetary policy and the 2021 republican budget, the government’s press office reports. </p> <p> </p> <p> “At the session of the Presidium, the year 2021 was designated as a year of economic recovery and the beginning of a new investment cycle. Resources and economic policy instruments that will be used to achieve the investment targets are yet to be considered,” Golovchenko said. </p> <p> </p> <p> According to Economy Minister of Belarus Alexander Chervyakov, capital investments may reach Br34 billion ($13.2 billion at the rate of the National Bank of Belarus) in 2021. Of this amount, 70% will be channeled into modernization and setting up new production facilities,” said Chervyakov. </p> <p> </p> <p> Possible sources of significant investment growth in 2021 were not specified. For comparison, in January-September 2020, capital investments stood at Br20.459 billion ($8 billion). At an annual rate, investments in 2021 are expected to grow by 30%. </p> <p> </p> <p> The Economy Ministry says Belarus’ GDP may grow by 1.8% in 2021. Hopes are pinned on growth of households’ domestic consumption, increased investments and exports. </p> <p> </p> <p> As previously reported, the Economy Ministry expects a 0.6% year-on-year decline in Belarus’ GDP in 2020. </p> <p> </p> <p> According to Golovchenko, the 2021 budget is being set under the influence of the unstable economic environment. Therefore, the extra spending lobbyists should offer sources of revenues. </p> <p> </p> <p> The main parameters of the draft budget for 2021 and proposals for adjusting the Tax Code were considered and generally approved earlier by the Presidium of the Council of Ministers. The prime minister asked Finance Minister Yuri Seliverstov to report on how the instructions on tobacco excises, optimization of value-added tax benefits, and budget expenditures related to the epidemiological situation were carried out. </p> <p> </p> <p> Golovchenko said that some benefits “had lost their stimulating meaning and can be viewed as ineffective government support.” </p> <p> </p> <p> Seliverstov said earlier that the deficit of the republican budget for 2021 will be at or above 2%. </p> <p> </p> <p> As previously reported, for the first time in several years, there will be a deficit of Belarus’ budget of 2020. It was initially assumed that the deficit would amount to Br995.1 million ($387.1 million), or 0.7% of projected GDP. However, January-August 2020 already showed a deficit of Br1.536 billion ($597.5 million), or 1.7% of GDP. </p> <p> </p> <p> The surplus of the 2019 republican budget of Belarus amounted to Br3.229 billion ($1.256 billion), or 2.5% of GDP. End (Br2.5708/$1) </p> <p> </p> <p> See the Prime Business issue of October 19, 2020 for the analysis of the draft socio-economic development forecast for 2021. </p>
2020-10-20
Primepress
MINSK, Oct 20 - PrimePress. Belarus expects recovery growth of the economy and the start of a new investment cycle in 2021, Prime Minister of Belarus Roman Golovchenko said at a session of the Council of Ministers held to discuss socioeconomic development forecasts, monetary policy and the 2021 republican budget, the government’s press office reports.
“At the session of the Presidium, the year 2021 was designated as a year of economic recovery and the beginning of a new investment cycle. Resources and economic policy instruments that will be used to achieve the investment targets are yet to be considered,” Golovchenko said.
According to Economy Minister of Belarus Alexander Chervyakov, capital investments may reach Br34 billion ($13.2 billion at the rate of the National Bank of Belarus) in 2021. Of this amount, 70% will be channeled into modernization and setting up new production facilities,” said Chervyakov.
Possible sources of significant investment growth in 2021 were not specified. For comparison, in January-September 2020, capital investments stood at Br20.459 billion ($8 billion). At an annual rate, investments in 2021 are expected to grow by 30%.
The Economy Ministry says Belarus’ GDP may grow by 1.8% in 2021. Hopes are pinned on growth of households’ domestic consumption, increased investments and exports.
As previously reported, the Economy Ministry expects a 0.6% year-on-year decline in Belarus’ GDP in 2020.
According to Golovchenko, the 2021 budget is being set under the influence of the unstable economic environment. Therefore, the extra spending lobbyists should offer sources of revenues.
The main parameters of the draft budget for 2021 and proposals for adjusting the Tax Code were considered and generally approved earlier by the Presidium of the Council of Ministers. The prime minister asked Finance Minister Yuri Seliverstov to report on how the instructions on tobacco excises, optimization of value-added tax benefits, and budget expenditures related to the epidemiological situation were carried out.
Golovchenko said that some benefits “had lost their stimulating meaning and can be viewed as ineffective government support.”
Seliverstov said earlier that the deficit of the republican budget for 2021 will be at or above 2%.
As previously reported, for the first time in several years, there will be a deficit of Belarus’ budget of 2020. It was initially assumed that the deficit would amount to Br995.1 million ($387.1 million), or 0.7% of projected GDP. However, January-August 2020 already showed a deficit of Br1.536 billion ($597.5 million), or 1.7% of GDP.
The surplus of the 2019 republican budget of Belarus amounted to Br3.229 billion ($1.256 billion), or 2.5% of GDP. End (Br2.5708/$1)
See the Prime Business issue of October 19, 2020 for the analysis of the draft socio-economic development forecast for 2021.