COMMERCIAL SECTION

 

 

 

Republic of Belarus

Embassy Home

The Ambassador

Press Releases

Commercial Section Home

Cultural & Humanitarian Section

Consular & Visa Section

Contacts & Location

Site Map

 

Official Site of the President
of the Republic of Belarus

Council of Ministers
of the Republic of Belarus

Ministry of Foreign Affairs

Ministry of Economy

Ministry of Finance

Ministry of Industry

Ministry of Statistics and Analysis

Ministry of Architecture and Construction

Ministry of Labour and Social Protection

 

TAXATION AND SOCIAL EXPENDITURES

 

In the sphere of budgetary and tax policy in 2001 the main emphasis was placed on reducing the negative impact of the budget deficit and on methods for its financing with account of inflation processes. A balanced and moderately strict policy was conducted as regards state expenditures. Budgetary resources were used in the manner of priority for ensuring expenditures related to monetary payments to employees engaged in budgetary sphere (for a step-by-step increase of salaries and wages, bringing them to the level equivalent to 100 US dollars), preparation and performance of agricultural work, as well as purchase of food products and medical drugs. Throughout 2001, the Government conducted active work on liquidation of inefficient budgetary expenditures. In particular, a rigid stand was taken on the issue of providing loans and credits to economic subjects from the budget.

The main objectives of budgetary and taxation policy in 2002 were defined both as stimulation of economic development and reducing of the level of inflation. It is planned to attain these objectives through a step-by-step reduction of the number of applied taxes and duties and maximum simplification of their collection procedure. It is planned to reduce tax burden in 2002 by 2.3% (from 36.2% of the GDP to 33.9%). Specific changes in the tax system in 2002: expansion of the tax base by reducing preferences on tax payments; imposing of moratorium on new taxes and duties as well as on their rates; reduction of the rate of the tax on profits from 30% to 24%.

____________________________

National Centre for Marketing and Price Study

____________________________

Online Catalogue of Belarusian Goods, Services and Companies
at the National Centre for Marketing and Price Study

____________________________
GUIDEBOOK ON DOING BUSINESS IN BELARUS
____________________________

Internet resource on investment potential of Belarus

____________________________

Belarus Investment Projects

____________________________

Belarus Innovation Projects

____________________________

 

 

 

For the purpose of stimulating domestic demands, the Government of the Republic of Belarus sticks to the line of permanent increase of real incomes of population. The policy of the State in the field of incomes and payment for labour is exercised stemming from the strategic goal of increasing the standard of living of population on the basis of sustainable economic growth. One of the most essential results of social policy in 2001 was increase of monetary incomes of population and increase of their purchasing power. Further increase of salaries and wages of people employed in the budgetary sphere will be ensures by a step-by-step increase of the first-category tariff rate to the living wage minimum. In 2002, the size of the first-category tariff rate should reach 60% of the living wage minimum (from December 2001 it was established at the rate of 33.3%). The measures planned would make it possible to increase monthly average salaries in the national economy, in 2002, 1.4 times, brining them by the end of the year to 120-125 US dollar equivalent.

Real salaries of employees in 2001 were increased by 30.3% as compared to 2000. The purchasing power of salaries went up. While in 2000 one monthly average salary allowed buying 1.3 sets of commodities and services included into the minimum consumer budget, then in 2001 it was equivalent to 1.5 sets.

Real monetary incomes of population increased by 25% as compared to 2000, as a result of measures taken to increase salaries, pensions and allowances in 2001.

The system of targeted social support was introduced in the Republic as from 1 January 2001; the main beneficiaries of this support are families rearing many children and incomplete families rearing minor children.