19 March 2024, Tuesday, 14:57
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Why Do Authorities "Pluck" Enterprises?

Why Do Authorities "Pluck" Enterprises?
BARYS ZHALIBA

Actions of authorities contradict the global market standards.

The Belarusian government has confirmed the list of highly profitable companies that will transfer part of their profit (income) to the special-purpose budget fund of national development depending on the operating results of these companies for the year 2015.

The previously approved list consisted of 29 companies, including JSC "Belaruskali", JSC "MAPID", "Minskproyekt", "Beltelecom", JSC "Ekzon", "Minskinterkaps", "Belgosstrakh", "Beleximgarant", "Belvneshpromservice" and others.

Doctor of Economic Sciences Barys Zhaliba explained why the authorities decided to take money from enterprises that had barely managed to survive in his comments to Radio Racyja:

– It is not market practice, when the state strips the money off the highly profitable enterprises. It is a peculiar Belarusian know-how, though in Russia there also exists such practice, when companies transfer money to the National Development Fund. In Belarus oil refiners, "Belaruskali" and other companies give the money. If there was some kind of redistribution, then it would make sense, but it seems to me, that the money of the enterprises simply go to the budget, which is "leaky" today. In general, they plan to reduce budget expenditures by 7 percent. Thus, as the saying goes, many a little makes a mickle. But there are very few profitable enterprises in our country. There is a large percentage of the enterprises which profitability is less than 5 percent. There is nothing to take from such enterprises.

– Would it be better if this money were spend on development of production of the enterprises?

– Of course, if we speak of market standards. Enterprises in general should be fully self-sustaining and self-financing. And part of the money should always be allocated on their own development. The enterprises themselves, by the way, are also not interested in giving the money away, but we have a different type of economy structure. So, the one who better works, should be the one who pays more too.

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