Implementation of the 2011 budget
An increase in budget revenues was due to inflationary factor: by the year-end the inflation rate has decreased significantly. As of 2012 the structure of the regional budget expenditure will change significantly due to growing state spending, inter alia, to maintain external and internal debts.
As of 1st January 2012, the tax revenues of the Belarusian consolidated budget of 2011 constituted Br 53.8 trillion (USD 6.4 billion), including Br 22.5 trillion (USD 2.6 billion) of the Republican budget and Br 31.3 trillion (USD 3.8 billion) of the local budgets.
The increase in revenues of local budgets was also due to changes in the budget law (in 2011 all income taxes paid by utilities and non-governmental organizations were entered into accounts of the local budgets), the growth of taxable revenues and of the tax base for income tax.
As of 2012 the structure of the regional budget expenditure will change significantly due to growing state spending, inter alia, to maintain external and internal debts. For instance, the cost of foreign debt repayment from the state budget will amount to USD 918.4 million, and external public debt payments will amount to USD 698.5 million.
The Minsk region consolidated budget plan for 2011 revenues has been fulfilled by 103.7%. The main sources of income were the income tax, value added tax, revenues tax, property taxes, as well as grants received from the state budget.
In the first nine month of 2011 own revenues increased by 49.3% (in real terms by 9.8%). All in all, tax payers of the Minsk region in 2011, paid more than Br 7.4 trillion of taxes and other payments into the local budget and budget funds.
Almost half of the local budget revenues were revenues from tax payers of Soligorsk region (47.1%). Traditionally significant contributions came from regions with large industrial enterprises: Minsk (19.7%), Molodechno (6.4%) and Borisov (5.3%).
The Grodno region consolidated budget plan for 2011 revenues has been fulfilled by 104.1% and constituted Br 3.153 trillion. The republican budget received Br 295.7 billion, or 141.8% of the projected revenues and the local budgets – Br 2.857 billion or 101.3%. The overall projected budget plan has been exceeded by Br124.8 billion. However, the original draft of the consolidated budget revenues in 2011 for Grdono oblast, adopted in December 2010 projected the amount of Br 3.679 trillion.
Private business generates about 30% of the tax revenues to the budget of the region.
The most significant part of the budget revenues is due to the income tax (27.3%) followed by excise taxes - 18.0%, revenue tax - 16.2%, value added tax - 7.1%, real estate tax - 4.9% and contributions to innovation funds - 4.2%.
The Gomel region consolidated budget plan for 2011 revenues has been fulfilled by 104.1% and constituted Br 7.358 trillion. The republican budget received Br 3.113 trillion, or 106.7% of the projected revenues and local budgets – Br 4.246 trillion or 102.2%.
About one-quarter of the revenues of the consolidated budget in the past year was due to excise tax, 16.5% - to the value added tax, followed by income and revenues tax: 15.9% and 15.5% respectively.
The largest amount of revenues to the consolidated budget was paid by taxpayers of Mozyr region (41.6%) and the Zheleznodorozhny District of Gomel city (19.5%): by Mozyr Oil Refinery and Gomselmash respectively.
The Brest region consolidated budget plan for 2011 revenues has been fulfilled by 111.5% and constituted Br 1.280 trillion with additional grants amounting to Br 2.96 trillion. Expenditures amounted to Br 3.696 trillion (97.5%).
In 2011 all parts of the region managed to exceed the projected volumes of revenues in their budgets.
In 2012 this situation is not likely to repeat and there will be budget deficit due to the fact that some of the large and successful enterprises in the past already have debs to the budget and had to borrow money to pay salaries to their employees.
In 2011 the consolidated budget of the region received Br 2.61 trillion of revenues, at the same time, at constant prices revenues have decreased by Br 896 as compared with 2010.
The growth of budget revenues was mainly due to the value added tax and income tax, revenues tax, land and property taxes, revenues from renting and selling property.