Agriculture is likely to lose its priority status for budget financing
According to the draft state budget for 2017, overall expenditure on agriculture will be reduced by 16% in 2017. More than half of the allocated funds will be used to pay interest on loans to agriculture, taking into account the pessimistic budget scenario and anticipated cost reductions in the economy. Agricultural enterprises are likely to accumulate losses and to undergo restructuring, those employed in agriculture are likely to reduce in number and most unprofitable enterprises are likely to be transferred to more successful farmers and agro-businesses. Some bad debts of agricultural enterprises will be restructured after their assets are transferred under the Asset Management Agency’s management. The state is likely to continue to reduce its support to agriculture due to the lack of budgetary funds.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.