Budget crisis gathers pace in Belarus: salaries to drop even more

In the near future incomings of Belarusians who are paid from the state treasury are to be cut down inevitably.

According to PRIME-TASS agency, foreign currency earnings of Belarusian enterprises in January-June 2009 was $10,832 billion, according to preliminary accounts, which is by 41.9% less than in the analogous period of 2008. Decline of the economic circumstances of enterprises causes considerable cut downsizing of budget receipts, which inevitably draw Belarus into the new stage of the crisis, a social one.

“According to all economic laws Belarus starts to be drawn into budget crisis now. It is obvious that the economic state of our largest enterprises, that give most revenues increasing the budget, continues to worsen. They are about 200 export-oriented enterprises. They are not giving as much money as last year. It means that incomings of people, who are paid from the state treasury, are to be cud down inevitably now. This process is to start in the second half of this year and to continue in the beginning of the next year,” an economist Mikhail Zalessky comments the situation to www.udf.by.

This being said, when receiving the new tranche of the IMF loan, the government would have to go the length of follow recommendations of the fund, one of which is liberalization of price formation.

“And the things that have happened in all countries where the IMF and the World Bank have worked will happen in our country: I mean dramatic social stratification of the population. The authorities can well consent to such a scenario to take place. They can go any length for preserving their snug chairs and a possibility to continue their adventurist policy,” Zalessky believes.