As net proceeds fall, government contemplates state support for enterprises
Belarus’ net proceeds fell by 40 % compared with 2012, suggesting that production costs increased against revenues, tax revenues fell and investment opportunities reduced. It is anticipated that the government will increase various subsidies, will compensate for high interest rates on loans in different industrial sectors, will optimize the number of employees at enterprises, will seek additional revenues to the state budget and will lift some restrictions on prices for industrial enterprises.
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.