Myasnikovich’s economic revival program not to be fully implemented
At the Presidium of the Council of Ministers meeting, Prime Minister Mikhail Myasnikovich identified Belarus’ key priorities for the economy in 2014: balanced economic growth and efficiency.
The Belarusian authorities aspire to stabilize the economy ahead of the 2015 presidential campaign through a series of unpopular measures. President Lukashenko does not want to be associated with such decisions and shifts the responsibility for their adoption and implementation to the government. However, the measures announced by Prime Minister Mikhail Myasnikovich, aiming to improve the Belarus’ economy, cannot be implemented in full because they threaten the existing socio-economic model.
Nevertheless, persistence and consistency might help the government to achieve some success and somewhat improve the economic situation, which means softer social policies right before the 2015 presidential elections.
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.