English

House approves first reading of 2010 budget

The House of Representatives of the Belarusian National Assembly on Wednesday gave unanimous first-reading approval to the draft 2010 national budget.

Finance Minister Andrey Kharkavets told the House that the budget provided for the abolition of four taxes. In particular, he said, the government plans to scrap compulsory payments into the Fund for Support of Agricultural Producers, the local tax on retail sales, the local tax on purchases of motor vehicles and the local parking tax.

The government will raise the rate of value-added tax is from 18 to 20 percent to compensate for revenue losses caused by the abolition of the taxes, the minister said. The tax raise is expected to generate 1.7 trillion rubels in extra revenues, he noted.

Consolidated budget revenues are slated at 53 trillion rubels, or 30.4 percent of GDP. Central budget revenues are expected to total 35.5 trillion rubels, a rise of 20.7 percent compared with this year.

Consolidated budget expenditures are slated at 55.7 trillion rubels. Central budget spending is projected to total 38 trillion rubels, up by 23.5 percent.

The national budget is projected to have a deficit of 2,700 billion rubels, or 1.5 percent of GDP.

The finance minister described the budget as "balanced" and "capable of contributing to economic growth." The implementation of the budget will make it possible to secure an increase in household incomes and broader targeted assistance for low-income groups and help develop the economy, according to Mr. Kharkavets. //BelaPAN