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House gives first reading to 2011 budget bill

The House of Representatives of the Belarusian National Assembly gave the first reading to the draft 2011 National Budget Law at its extraordinary session held on September 7, BelaPAN reports.

The legislation is to receive the second, final reading on September 14.

Finance Minister Andrey Kharkavets said that a key priority of the draft law was ensuring the “sustainability of treasuries of all levels accompanied by the fulfillment of all budgetary obligations and the concentration of financial resources on national priorities and state programs.”

The budget estimates were drawn up based on assumption that GDP will increase by 10 percent, the inflation rate will go up by eight percent and the Belarusian rubel will average out at 3,170 against the US dollar in 2011.

The government’s consolidated budget revenues are to amount to 54,500 billion rubels ($18.17 million), or 18.1 percent more than what was projected for this year.

As is the case at present, value-added tax is to account for 35.1 percent, profit tax for 10 percent, tax on income from foreign economic activities for 13.3 percent and excise tax for 9.8 percent.

The government’s expenditures are projected at 60,500 billion rubels.

“The projected spending will allow guaranteeing a 35-percent rise in average monthly pay, students’ scholarships and other payments compared with this year,” Mr. Kharkavets said.

Expenditures on healthcare, education and social policy are to increase by 36, 45 and 35 percent, respectively.

Spending on the national economy is to total 7,200 billion rubels.

The 2011 budget deficit is projected to amount to 6,000 billion rubels, or three percent of GDP. No loans of the National Bank will be used to finance the deficit.