Sidorski: We have failed in all spheres
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11:49, — Economics
The main shortcomings of the economy development in 2007 was foreign trade, in particular, adverse balance and agribusiness rate of growth, told Prime Minister Syarhei Sidorski on Tuesday at a session of the Council of Ministers.
“We have serious claims to development of the agribusiness sector,” told S. Sidorski. As said by Prime Minister, the growth of agricultural production planned by the program of rural development in 2005-2010 was 45%. “Unfortunately, in general we lag behind the five-year plan,” he said. As said by S. Sidorski, in order to restore the rate of growth of agricultural production, 7.6% increment of growth in 2008-2009 is necessary.
“In January we have failed in growth of agricultural production in almost all regions. If last year we increased production of milk at 12%, this January the growth was only 5.6%,” Sidorski said. He asked a question what happens with milk production in the conditions when we have accumulated enough food, according to papers”.
“There should not be any such failures in the economy,” stated the head of the government, underlining that the same concerns production of meat. In particular, prime minister noted that rate of growth of meat production was 2.7% compared to 11.9% last year.
The program of rural revival in jeopardy
Economy minister Mikalay Zajchanka stated that parameters of state program of rural revival and development for years 2005-2010, in the part of agricultural production growth can be unsuccessful.
“As goals for growth of agricultural production in 2007 haven’t been achieved, the parameters of rural revival in 2005-2010 can fail as well,” he said.
He reminded that in line with the program agricultural production was to grow by 45% over 6 years, or by average 6.4% a year. However, in 2005-2007 the cumulative growth of agricultural production was only 12.2% as compared to 20.5% to that period.
M. Zajchanka underlined that “Agriculture Ministry hasn’t still agreed with a growth parameter of 8.5% offered to the ministry”. “Accepting the variant of Agriculture Ministry, 6% of growth in 2008, the backlog would only grow. So it was increased to 8.5%. Considering that, even if we reach 9% in 2009 and 2010, we would only draw nearer the 45% demanded by the program. That is why we cannot change the pace of growth rubberstamped for 2008,” the minister said.
Meanwhile, the growth of agricultural production in January 2008 has grown by 3.5% only, Zajchanka said. As said by him, “none of the regions have fulfilled the goals, and Agriculture Ministry hasn’t agreed to the goals still”.
You can go nowhere without investment
The problem of realization of the government’s task to increase capital investment in 2008 by 25% has aggravated in Belarus, economy minister stated.
“The government orders to increase capital investment by 25% in 2008. But the problem to fill it with real projects has aggravated,” Zajchanka said. “Many projects do not correspond to the task, and many people do not see where investment should be channelled,” he stressed.
However he finds the situation in the sphere of investment one of the most unfavorable among other macroeconomic indicators.
The Minister said that in January 2008 the volume of capital investment decreased by 2.9% as compared to January 2007. Noting the high indicators of January 2007, when investments grew by 47%, the minister underlined that “it’s a more profound issue”.
He offered the example of Belneftekhim concern. In order to fulfill the annual plan of investment, its enterprises were ahead of schedule in deliveries of equipment, planned for the beginning of January. “As a result, the task in investment hasn’t been fulfilled by the concern in 2007, and in January 2008,” the minister stressed, calling it a serious problem.
Beside Belneftekhim concern, the minister named Industry ministry and Construction and Architecture Ministry as agencies that hadn’t fulfilled the plan of investment. He has also noted that Minsk region and Minsk have decreased the volume of capital investment.
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