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Barys Zhaliba: The Belarusian Budget Follows the Soviet Model

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Barys Zhaliba: The Belarusian Budget Follows the Soviet Model
PHOTO BY SVABODA.ORG

Belarusian bureaucrats use "a socialist trick".

The Finance Ministry of Belarus released an official report on budget fulfillment in the first quarter of 2016.

It is noted that country-wide financing made up 21% of the annual plan, the national economy financing equaled to 17%, and the social sphere - 22.5%.

The Ministry of Finance states that "tax liabilities made up a trillion of rubles" as of April 1.

"I primarily noted two things - the implementation of the republican budget for the first three months and the tax debt, Barys Zhaliba, Professor and Doctor of Economics, informed Radio Svaboda . -The budget is formally done with a surplus. In words of one syllable it means that the budget revenue exceeds its expenditures. They made up Br3.8 trillion or 1.8% against the entire GDP.

And it is not the very first time. So, why is the Belarusian economy in a bad state?

I think the secret is as follows: the Belarusian budget is based on the Soviet model. How did it happen then? The socialist trick was used. No one was going to tackle serious problems. Every director, every region, district, republic artificially faked their producibility. It made up the budget. It is clear that it was easier to fulfill or even beat the target, and it resulted in good bonuses.

It seems to me that the Belarusian budget follows the Soviet model.

The thing that made me wonder the most is that the tax debt equaled to a trillion of rubles. Though our tax authorities are not notable for gentleness. I would say they ring up taxes from public enterprises, businessmen, and even small business.

I teach off-site students. There are employees of tax authorities among them. I ask them: please, say honestly, does your bonus depend on the taxes you ring up? They say yes. Therefore, they fine people whether it is needed or not.

So what? Even such pressure on the part of tax authorities has failed to load the budget by a trillion of rubles. And this figure reflects the actual financial state of our enterprises. And it is too high for a quarter."

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