The Belarusian Prime Minister noted the poor state of the economy.
“Unfortunately, those external factors that put in the forecast in 2016, was far worse than we could imagine. Although we have not predicted — we relied on figures from international financial organizations”, – declared Prime Minister of Belarus Andrei Kobyakov in an interview with the programme “Glavny Efir” TV channel “Belarus 1”, writes tut.by.
Lukashenko recently complained that the matrix of the forecast indicators in the first quarter was mostly in red. Home “red” indicator, explained Kobyakov, and economic growth. GDP for the quarter fell 3.6%.
As a result, the government was compelled to adopt measures of fiscal consolidation.“At 16 trillion we have set aside a spending budget. And it is very sensitive — we couldn’t afford to touch social obligations, salaries, pensions”, — said Kobyakov, adding that in parallel there was a search for new sources of income. It was the increase of excise rates on fuel (“without increasing retail prices”, — said the Prime Minister) and tobacco products, the rejection of VAT privileges on public transportation (“not increasing prices”).
“Of course, the government offered a more in-depth measures that are sensitive to population. The head of state did not agree with them”, said Kobyakov.
The Prime Minister agreed with the thesis Lukashenko about Belarusian economy growth drivers: “the President very clearly said, though to some it may seem that there is no special novelty, — reduce costs. Do not ask for money to maintain loss-making and inefficient activities, and bring it into line with new conditions”.
He assured that the government will try to mitigate the situation, “but if the company is unable to provide a balance between income and expenses, you generally have nothing to talk about”.
The question is, Kobyakov explained that the enterprise unprofitable, inefficient, constantly asking for help, must address the cost reduction in the first place, and such features there is more than enough. “Many people think that talk-talk, and the story will end. And then they’ll give money and all will live happily ever after, eating and hoping that will give me more. This will not be”, — he assured.
Kobyakov stressed that the programme for the next five years “is not supposed irresponsible monetary expansion”, which will lead to inflation and devaluation. “We must come to the normal parameters of our macroeconomic and monetary policy”, — he noted, in particular, reducing inflation to 5% by 2020.
He also noted that last year not enough growing exports to the countries of the “far arc (+12% by 2014. “A little,” said Kobyakov).
Speaking about attracting foreign investment and untapped credit lines, the Prime Minister noted that last year Belarus attracted foreign direct investment on a net basis in the amount of $ 1.6 billion, but 85% of it is reinvested earnings of those already employed in the economy.
“As for fair presidential rebuke to the government. We are talking about the development of foreign credit lines, that is those funds that will have to return… To realization of new projects we are very sensitive. We could fill projects, these credit lines — social, infrastructure, those that would simplify our budget expenditure. But how to return? Therefore, we focus on the commercial payback projects. And the deficit”, — concluded the Prime Minister.
