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Government projects $1 billion budget deficit next year

The government projects a budget deficit of 2.2 trillion rubels (roughly $1 billion at the current exchange rate), or two percent of GDP, in 2008, Finance Minister Mikalay Korbut said at a government conference in Minsk on November 13.

Next year’s budget spending is expected to exceed revenues because the government plans to channel additional funds for the development of the economy’s real sector, according to the presidential press office.

Mr. Korbut said that budget revenues are expected to total 50.6 trillion rubels and expenditures, 52.8 trillion. The 2008 draft budget provides for an increase in expenditures on education, healthcare and priority industrial programs.

Expenditures on the maintenance of governmental and law-enforcement agencies are not expected to rise sharply, the minister said.

The average monthly pay will amount to 700,000 rubels in 2008, the minister announced.

The coming abolition of state benefits for many groups of people will help the government save an estimated 168 billion rubels, which will be spent on targeted aid to the needy, maternity benefits and Chernobyl-relief projects, Mr. Korbut noted.

The government plans to provide 1.1 trillion rubels in subsidies for utilities to prevent a sharp rise in utility and electricity rates for customers. Households are expected to cover only 34 percent of utility costs next year.