Government: Inflation in Belarus has fallen, ruble has gained strength, and the economy is on the path of recovery growth

The Prime Minister presented an up-to-date assessment of the economic situation in the Oval Hall of the Parliament today. The agenda includes a package of key financial documents for the next year, including the 2023 budget. By tradition, the deputy corps and members of the government compare positions before they put the documents to a vote in Parliament. A scenario of economic development was taken as a basis for the budget. The main financial document keeps its social orientation. There are plans to increase spending on education, health care, wages, and transfers to the social security fund. There are plans to strengthen the budgetary support for exports and the financing of the purchase of equipment from domestic manufacturers.

It is planned to increase the incentive payments to certain categories of public sector workers up to 55%, as well as to create an additional reserve fund of the President, subject to the fulfillment of forecast indicators, whose funds will be used to increase salaries. All these measures will make it possible to reach the average monthly wage in 2023 at the level of 1,454 rubles which will make 75 % of the average wage in the country.

The budget will remain socially oriented. Expenditures in this area will be increased by 17.5%. 19% or more will go to education and the payment of state employees' salaries. Nearly 16% will go to health care, pensions and social benefits. The main income is traditionally formed by taxes.

Yuri Seliverstov, Minister of Finance of Belarus:

“Taxes are the main source of income. They are not as bad as they seemed at the beginning of the year. But in order to consolidate next year, we propose to increase the income tax rate from 18% to 20%. This will make it possible to generate additional funds. Also, as part of our cooperation with the Russian Federation, we will be receiving, just like Russian oil refiners, a reverse excise tax under unified rules. This will also increase our income to approximately 2 billion rubles. We will be provided with revenues.”

As for domestic processes, the government is optimistic: their forecast is 3.8% GDP growth and investment inflow over 22%, while the inflation is expected to be somewhere between 7-8%.