Additional tax on working population would reduce Social Security Fund deficit but unlikely to support unemployed
The Labour Ministry proposed to create an insurance fund within the Social Security Fund for Population at 0.5% of the payroll, which would ensure that people, who had lost their job, received at least 60% of the most recent wage for up to six months. Taking into account current wage level and employment in the economy, the additional tax burden on enterprises would total circa BYN 125-130 million. In 2016, more than 100 000 people were laid off on a net basis, which means the planned amount would not cover the need in benefits. It would be reasonable to expect that the authorities continue to increase the tax burden on profitable enterprises. Unemployment benefits are likely to increase too, albeit without being tied to the most recent wage. Meanwhile, by reducing the Social Security Fund deficit, the authorities would reduce budgetary assistance to the Fund. Creating an insurance fund would not solve the unemployment issue, as only a sufficient number of jobs in the economy would make it possible to avoid the increased tax burden on enterprises.
President Lukashenka continues to rotate staff and rejuvenate heads of departments and universities following new appointments in regional administrations. Apparently, new Information Minister Karliukevich could somewhat relax the state policy towards the independent media and introduce technological solutions for retaining control over Belarus’ information space. New rectors could strengthen the trend for soft Belarusization in the regions and tighten the disciplinary and ideological control over the student movement in the capital.
President Lukashenka has appointed new ministers of culture and information, the new rector of the Belarusian State University and heads of three universities, assistants in the Minsk and Vitebsk regions.
The new Information Minister Karliukevich is likely to avoid controversial initiatives similar to those former Minister Ananich was famous for, however, certainly within his capacities. Nevertheless, the appointment of Belarusian-speaking writer Karliukevich could be regarded as the state’s cautious attempt to relax environment in the media field and ensure the sovereignty of national media.
The Belarusian leadership has consolidated the trend for mild Belarusization by appointing a young historian and a ‘reasonable nationalist’, Duk as the rector at the Kuleshov State University in Mogilev. Meanwhile, while choosing the head of the Belarusian State University, the president apparently had in mind the strengthening of the ideological loyalty among the teaching staff and students at the main university in order to keep the youth movement at bay. Previously, Korol was the rector of the Kupala State University in Grodno, where he held purges among the disloyal teaching staff.
The trend for the renewal of mid-ranking executives and their rejuvenation has confirmed. The age of the Culture Minister and three new rectors varies from 39 to 44 years old.