External sanctions not to affect Belarus govt’s budget commitments in 2021 – FinMin
<p> MINSK, Oct 11 - PrimePress. External sanctions will not affect the Belarusian government's budget commitments in 2021, said Finance Minister Yury Seliverstov. </p> <p> </p> <p> Seliverstov said in an interview with ONT TV channel on 10 Oct 2021: “We will probably not be able to get completely out of the deficit this year and recover the way we have been working before (when Belarus had a budget surplus – editor’s note). Moreover, certain industries are under sanctions. However, there will be no failures, defaults in payments, or any additional measures that may affect the wellbeing of citizens.” </p> <p> </p> <p> In his words, “this year’s budget will be fine, there should not be any worries”. </p> <p> </p> <p> Seliverstov reminded that while making a budget plan for 2021 the government had taken as a reference a conservative scenario with a fairly significant deficit of Br4 billion ($1.514bn at the NBB rate), which increased to Br6 billion ($2.421bn), or more than 3% of GDP, after adjustments at the beginning of the year. </p> <p> </p> <p> “It was not clear how the country would emerge from the pandemic, how our colleagues who purchase our goods, works, services would emerge from the pandemic, and how much we would be able to earn for the country as a whole. However, in January-September 2021, the deficit stood at a little over Br1 billion, less than 1% of GDP,” the minister said. </p> <p> </p> <p> In his words, next year’s budget is also planned within conservative scenarios. “There will be budget consolidation. All revenues are grouped and expenses that can wait until later are excluded in order to stay in balance as much as possible and to have reserves. Despite the austerity nature of the national budget 2022, public sector employees and pensioners will not feel any additional burden - salaries will increase in any case. The salary growth will be higher than inflation,” the minister assured. </p> <p> </p> <p> Earlier, Seliverstov informed that Belarus was expected to end up with a budget deficit of not more than 1.6% of GDP or Br3 billion ($1.21bn at the NBB rate) in 2022. In 2020 Belarus’ budget deficit amounted to Br1.859 billion ($741.14 million at the rate of National Bank of Belarus) or 1.3% of GDP. </p> <p> </p> <p> As previously reported, the EU Council on 25 June 2021 introduced sanctions against largest sectors of Belarus’ economy entities in response to human rights abuse by Belarus authorities and the Ryanair diversion incident of 23 May 2021. The EU Council prohibited EU entities and individuals from purchasing, selling, and provide investment services for or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments with a maturity exceeding 90 days, issued after 29 June 2021. The government of Belarus, public bodies, corporations or agencies, or entities acting at their direction, are prohibited from acquiring insurance or reinsurance services from the EU. Any payments or disbursements by the European Investment Bank in connection with any existing agreements with the Republic of Belarus or its public authorities shall be prohibited. The ban also applies to continuation of EIB technical aid contracts. On 9 August, the US, the UK and Canada imposed sectoral sanctions on Belarus, including financial sanctions. End ($1/Br2.4775) </p> <p> </p>
2021-10-12
Primepress
External sanctions not to affect Belarus govt’s budget commitments in 2021 – FinMin
MINSK, Oct 11 - PrimePress. External sanctions will not affect the Belarusian government's budget commitments in 2021, said Finance Minister Yury Seliverstov.
Seliverstov said in an interview with ONT TV channel on 10 Oct 2021: “We will probably not be able to get completely out of the deficit this year and recover the way we have been working before (when Belarus had a budget surplus – editor’s note). Moreover, certain industries are under sanctions. However, there will be no failures, defaults in payments, or any additional measures that may affect the wellbeing of citizens.”
In his words, “this year’s budget will be fine, there should not be any worries”.
Seliverstov reminded that while making a budget plan for 2021 the government had taken as a reference a conservative scenario with a fairly significant deficit of Br4 billion ($1.514bn at the NBB rate), which increased to Br6 billion ($2.421bn), or more than 3% of GDP, after adjustments at the beginning of the year.
“It was not clear how the country would emerge from the pandemic, how our colleagues who purchase our goods, works, services would emerge from the pandemic, and how much we would be able to earn for the country as a whole. However, in January-September 2021, the deficit stood at a little over Br1 billion, less than 1% of GDP,” the minister said.
In his words, next year’s budget is also planned within conservative scenarios. “There will be budget consolidation. All revenues are grouped and expenses that can wait until later are excluded in order to stay in balance as much as possible and to have reserves. Despite the austerity nature of the national budget 2022, public sector employees and pensioners will not feel any additional burden - salaries will increase in any case. The salary growth will be higher than inflation,” the minister assured.
Earlier, Seliverstov informed that Belarus was expected to end up with a budget deficit of not more than 1.6% of GDP or Br3 billion ($1.21bn at the NBB rate) in 2022. In 2020 Belarus’ budget deficit amounted to Br1.859 billion ($741.14 million at the rate of National Bank of Belarus) or 1.3% of GDP.
As previously reported, the EU Council on 25 June 2021 introduced sanctions against largest sectors of Belarus’ economy entities in response to human rights abuse by Belarus authorities and the Ryanair diversion incident of 23 May 2021. The EU Council prohibited EU entities and individuals from purchasing, selling, and provide investment services for or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments with a maturity exceeding 90 days, issued after 29 June 2021. The government of Belarus, public bodies, corporations or agencies, or entities acting at their direction, are prohibited from acquiring insurance or reinsurance services from the EU. Any payments or disbursements by the European Investment Bank in connection with any existing agreements with the Republic of Belarus or its public authorities shall be prohibited. The ban also applies to continuation of EIB technical aid contracts. On 9 August, the US, the UK and Canada imposed sectoral sanctions on Belarus, including financial sanctions. End ($1/Br2.4775)