Belarus announced the reduction of budget expenditures in 2016

The parameters of the budget of Belarus will be revised in the direction of contraction to the end of June 2016, told reporters Deputy Finance Minister Vladimir Amarin.

“We will review the budget”, — said the Minister, stressing that the decision can be made “closer to the end of the first half” (quoted by RIA Novosti). “Of course, there will be some reduction in costs”, – quoted the Minister Agency Reuters.

The Republican budget of Belarus for 2016 was adopted in December 2015 with a surplus of approximately 17.2 trillion Belarusian rubles (about $850 million), or almost 2% of GDP. Total revenues (180,59 trillion Belarusian rubles) were calculated based on the cost of a barrel of oil at $50 and the value of the dollar at 18.6 thousand rubles. However, oil now costs less than $40 per barrel and the dollar has risen above 20.2 thousand rubles.

In anticipation of the adoption of the budget for 2016 Amarin recognized the possibility of revising its parameters and optimize the cost in that case, if it becomes clear that the price of oil is “leaning toward” the $40 per barrel. In mid February 2016, the Deputy Minister of Finance Yuriy Seliverstov recognized that changes in the parameters of the Republican budget can not be avoided, explaining that the adjustment budget process “difficult”, but because in the first quarter.

“We gradually get to it. I think in the second quarter, we will make suggestions,” – said the Deputy Minister (quoted by BelTA).

Earlier, the Finance Ministry of Belarus reported that in January-February 2016 the state budget was executed with a surplus of 4.3 percent of GDP. Within two months, the Republican budget revenues amounted to 25.4 trillion. rubles, or 14.1% of the annual plan.

By the end of 2015 the Belarus budget was executed with a surplus of 15.9 trillion Belarusian rubles, or 1.7% of GDP, which was aimed at reducing public debt. At the meeting in February 2016 the Board of the Ministry of Finance it was noted that the 2016 budget and financial systems of the country will be “difficult”, and therefore “great efforts to attract additional revenues to the budget, primarily through optimization and reduction of benefits”.