Belarusian authorities want to achieve single-digit inflation by 2017
The Belarusian authorities have developed an anti-inflationary programme in order to achieve an unambiguous inflation in 2017. The programme envisages measures that will help to keep inflation at 17% in 2015 and at 12% in 2016. The programme includes the reduction of state funding programmes by BYR 2.2 trillion in 2016, interference with the pricing processes by public authorities, growth of tariffs on natural monopolies services due to BYR exchange rate fluctuations, which will lead to a gradual increase in tariffs for housing and communal services. The programme does not take into account the possible impact of external factors on prices in Belarus, which, amid high dependency on the Russian economy, may lead to the anti-inflationary programme’s fiasco.
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.