Economic insolvency is pushing towards Belarusian Army reform

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April 22, 2016 18:43

At a meeting with the Security Council Secretary, Lukashenko requested to conduct spot inspections in the Armed Forces.

Similar practices were introduced in Russia in 2013 and would become common, as President Putin said, during the preparations for the Belarusian-Russian ‘West- 2013’ military exercises. Belarus’ growing dependence on Russia in the military sphere forces her to follow the trends in the Russian armed forces. In addition, a spot inspection in the Armed Forces will allow the Belarusian authorities to identify the most important elements in the defence system, which require modernization as a matter of priority and redistribution of dwindling public funds accordingly.

When the inspection is completed, President Lukashenko will take the final decision about how to reform the Belarusian Army. Most likely, priority will be given to air defence systems, Air Force, and special operations forces.

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The Labour and the Tax Ministries are considering the possibility to include persons engaged in some economic activity without forming a legal entity in the social security system. When the decree No 337 comes into effect, the number of private entrepreneurs is likely to reduce due to the possibility of reducing the tax burden when switching to a tax payment as an individual. 95% of self-employed, including PE, pay insurance premiums on the basis of the minimum wage. The number of self-employed citizens is expected to increase, the number of insurance contributions to the pension system from PE will decrease, the number of citizens who will pay a fee to finance government spending will decrease by several tens. Self-employed citizens have the alternative not to pay social security fees and save resources for future pensions, which, given the gradual restriction by the state of pension requirements could be a more long-sighted option.

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