On salaries, pensions and external debt - Lukashenko received the First Deputy Prime Minister and the Minister of Finance with a report

President of Belarus Alexander Lukashenko received First Deputy Prime Minister Nikolai Snopkov and Finance Minister Yuri Seliverstov for a report today, as reported by a BELTA correspondent.

President of Belarus Alexander Lukashenko received First Deputy Prime Minister Nikolai Snopkov and Finance Minister Yuri Seliverstov for a report today, as reported by a BELTA correspondent.

"We will discuss the execution of the state budget and local budgets," the President immediately outlined the purpose of the meeting. "At the same time, I want to draw your attention to answering my question about the budget's impact on wage formation. We agreed that for public sector employees, it should be 80% of the average salary in the country. Naturally, the budget significantly influences our people's pensions. Pensions are sacred."

The Head of State emphasized that the pension level should be 40% of the average salary, whatever it takes. "Veterans have turned out to be our most resilient and reliable people, effectively the backbone of our statehood during this difficult period. They must not be offended under any circumstances. If we offend them, it means we are not in power and not a state," he stated.

Another topic of the meeting at the Palace of Independence was the fulfillment of the state's obligations on external debt repayment. "What is the situation here? If it needs to be refinanced somewhere, then we need to think about the directions in which to develop this work. If we are not going to refinance and will cope on our own, then you must report to me how. Of course, these are difficult times. We have spent a lot of money on treating people for coronavirus, plus the economic situation has been strained by these street processions, so-called rallies – no one is counting the costs. But we are already seeing losses of 500 million, and the question is how many indirect losses there will be," the President noted.

The President also raised questions about the projected budget deficit due to the economic downturn not only in Belarus but also among its partners, whose trade relations have been affected by market closures. "What is happening in foreign markets, how is the economy functioning, and from which budget items are we receiving less revenue?" the President outlined several more questions.

As reported to journalists in early August by the Minister of Finance, Yuri Seliverstov, Belarus's budget may face a shortfall of approximately Br4 billion this year due to the oil situation and a slowdown in economic growth amid the pandemic.

The planned budget deficit has been increased from the initial Br900 million to Br2.1 billion. By the end of this year, it could reach up to Br5 billion. The minister emphasized that there is nothing extraordinary about this, as it reflects the restructuring of debt for the grain processing plants amounting to about Br1.3 billion. As Yuri Seliverstov explained, the Ministry of Finance has balances in Belarusian rubles accumulated from previous surplus years, which will be used to meet all obligations in the event of revenue shortfalls.

For the period of January-July, the deficit of the republican budget amounted to Br1.4 billion. Revenues totalled Br12.8 billion, and expenditures were Br14.2 billion. Revenue collection is Br1.5 billion lower than last year's level. Excise taxes (Br1.7 billion), VAT (Br5.8 billion), and export customs duties on potash fertilizers (Br883 million) are being received in planned volumes.

Export customs duties on oil and petroleum products (Br175 million, or 13% of the plan), profit tax (Br260 million, or about 18%), and dividends (Br216 million, or about 21% of the plan) are not being received in planned volumes. The slowdown in economic activity has directly affected the volume of dividend and profit tax receipts, the minister explained.