The government will continue exerting pressure on importers
On March 3rd, presidential Decree No 99 extended the moratorium on VAT set-off for 2015. This decision shall apply to all deals as of January 1st, 2015, except supplies from the EAEC countries, which are not subject to this regulation. This measure aims to increase budget revenues; however, some importers might change the logistics of supply in Russia’s favour. As a result, the range of specialised imported goods might decline, prices on products originating from countries other than the EAEC, might increase, some importers may suspend or terminate their activities. The fact that this document has been adopted proves that Belarus has substantial problems with budget revenues and that the state would audit all economic sectors in order to find additional financial resources.
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.