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Belarus' budget losses in 2020 due to tax maneuver, worse external conditions estimated at Br1.9bn

Economy 29.11.2019 | 19:38
Maksim Yermolovich. An archive photo
Maksim Yermolovich. An archive photo

MINSK, 29 November (BelTA) – The Finance Ministry expects that the next year's state budget will lose Br1.9 billion due to worse external conditions and the tax maneuver, BelTA learned from Belarusian Finance Minister Maksim Yermolovich on 29 November.

The official said: “The overall worsening of conditions is estimated at Br1.9 billion in 2020. There are a number of negative factors connected not only to the Russian Federation and our relations in the sphere of oil and gas but also to the current state of foreign markets, prices for the staple products Belarus trades in.”

Some of the losses have been compensated thanks to the actions taken by the Finance Ministry, thanks to saving more budget resources, better tax collection, and the revision of rates to match the inflation level.

“But in the end we are getting a situation when in nominal terms the budget remains at this year's level while expenses of the consolidated budget are supposed to rise by 9.3%,” Maksim Yermolovich stated.

The finance minister did not try to make any long-term projections of the influence of the tax maneuver. He explained that negotiations with Russian colleagues continue. “As for budget planning, in line with the general rule we are not optimistic about budget revenues. Respectively we've taken into account losses of the Belarusian oil refineries that have to operate in conditions of the tax maneuver going on in the Russian Federation,” he explained.

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