PM: 2023 budget to remain socially-oriented in Belarus
A session was held at the Council of Ministers to discuss formation of forecast documents for the next year. As before they will be based on the key principle of state policy: responsibility to citizens. As planned, financing of education and healthcare will increase, and more housing with state support will be constructed. Subsidising utilities and other important issues were also in focus.
Opening the meeting, Prime Minister Roman Golovchenko said that, after their formation, forecast documents for 2023 will be sent to the Head of State for consideration. “As you remember, the package of documents was reviewed in detail on September 27th, and it was generally approved at a meeting of the Presidium. All the outlined issues have been worked out, and a fundamental decision has been made: the key parameters of the work of the Government and the National Bank for 2023 remain unchanged, with the exception of the inflation indicator. The latter has been corrected by the Economy Ministry following the President’s meetings with the economic block of the Government,” he noted.
The Prime Minister recalled the main figures, “The GDP growth rate should be 103.8 percent, and the real disposable income of the population should increase by 4.1 percent (with real wages growing by 4.6 percent). The increase in investments in fixed assets is planned at the rate of 22.3 percent. Exports of goods and services should increase by 5.5 percent while inflation should be no more than 7-8 percent. All of the important parameters are balanced among themselves.”
Mr. Golovchenko also commented on the key factors of economic growth in 2023, stating that an outstripping growth of domestic demand by increasing investments in fixed assets will be one of them. According to the Prime Minister, to ensure this, 129 regional, 51 import–substituting and 14 integration projects worth 4bn 100m Roubles – provided with sources and financing mechanisms – are to be implemented. “In addition, 4 million 300 thousand square metres of housing will be built, including one million three hundred thousand with state support. Infrastructure facilities are also planned for implementation,” he added.
Another key factor for the economic progress is the growth of exports by 5.5 percent. “Based on the Economy Ministry’s calculations, forecasts of the development of foreign markets make it possible to increase foreign exchange earnings by $2.5bn. If exports to Russia grow, this growth is expected to make $1.4bn, and it will reach $300m in case of sales to China,” Mr. Golovchenko said.
The Prime Minister added that the budget was formed based on the target scenario of GDP growth, and its social focus has been preserved – as in previous years. “Spending on financing the social sphere will increase by 17.5 percent compared to the current year's figures, including spending on both healthcare and education will increase by more than Br10bn,” he explained, adding that the growth of healthcare costs makes 16 percent, education – 19 percent. “In addition, labour costs in state-financed organisations will be increased by 19.3 percent. 16.5 percent more funding will be allocated for payment of pensions, 15.8 percent – for social allowances,” Mr. Golovchenko continued.
The state will also continue to subsidise housing construction for young and large families, as well as other categories of citizens in need of better housing conditions. The volume of rental housing construction on certain conditions for special categories of citizens will significantly increase as well. “The budget provides one billion six hundred million Roubles for these purposes,” the Prime Minister explained.
