Belarusian state budget to fail income tax plan for 2016
According to the Finance Ministry, in January-February 2016, the national budget received BYR 300.6 billion from income tax payments or 3.3% of the projected amount for 2016. The low proceeds from income tax were due to the economy’s losses, which exceeded BYR 20 trillion. Following the adoption of the decree on writing off foreign exchange rate differences, the number of profitable enterprises is expected to increase. Compared with 2015, budgetary proceeds from income tax are likely to reduce due to further deterioration of price terms on foreign markets. In Q1 2016, the state budget expenditures are likely to be readjusted due to the expected shortfall in tax payments, and investment programmes of enterprises using own funds are likely to be reviewed. The state is likely to attempt to compensate for reduced income tax revenues by increasing the tax burden on profitable businesses and enhancing audit.
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.