Budget’s Amendments Sink Economy Deeper into Crisis :: Charter'97 :: News

A decision to amend certain provisions of the budget-2002 only contributes to the negative image, enjoyed by the Belarusian economy worldwide, BelaPAN quotes former head of the Belarusian National Bank Stanislav Bogdankevich, who commented on Alexander Lukashenko’s decree to clarify some budget provisions for the year 2002 of December 16.

The decree, in particular, envisages a 240,6bln rubles increase in the incomes of the national budget. The total size of expenditures was augmented by 354,6bln rubles, whereas the deficit of the national budget and sources of financing it – by 114bln, reports BelaPAN. According to the ex-head of the National Bank of Belarus, the necessity to change certain budget items and raise its deficit is conditioned by the flops, which appeared during the formation of the state expenditure list. “We don’t include certain expenditures, which are in reality spent by the state, while the sources of payment aren’t specified,” – said Bogdankevich.
The basic objective reason for the non-fulfillment of the previously passed budget plans is, according to the country’s former chief banker, “a huge ineffectiveness of economy” with almost half of all enterprises operating at a loss. He directly links difficulties with the budget’s fulfillment with the low working efficacy of the real economic sector. All this, says Bogdankevich, is happening under the conditions of the reforms’ abstention and implementation of policy, which does not stimulate the influx of investments, as well as artificial preservation of non-effective manufactures.