The Government Saves Money on Public-sector Employees

• 4.07.2016, 9:43

The regime is seeking money to pay off foreign debts.

As of results of 5 past months the surplus of the republican budget equaled to 7.5 trillion of non-denominated rubles or 2% of GDP.

The web-site of the Ministry of Finance of Belarus informs.

- How did they manage to optimize the government spending?

- The reduction of real wages in the public sector, senior analyst of Alpari Vadzim Iasub says to Zautra Tvaye Krainy. - At certain enterprises people work part-time. This is one of the factors that has contributed to the reduction of budget expenditures.

According to experts, the Belarusian government has been recently seeking a budget surplus. However, this is so-called primary surplus: without an external debt service.

- The current budget surplus is not enough to reduce the external debt. It is still subject to partial refinancing, Vadzim Iasub says.

- Will this tendency remain till the end of the year?

- Yes, it must. This surplus is planned and has not happened all of a sudden. The planned surplus is aimed at the external debt service.

- What will happen if it is not enough for the debt service and Belarus misses the external financing?

- Gold and foreign currency reserves will significantly reduce. And a sharp decline in foreign reserves may cause increased devaluation expectations. The people once again can make their ways to currency exchange offices which can turn into plummeting of exchange rates.

- This is the fourth day with new money. How does it affect the economic well-being of the country?

- This is a technical measure only. It cannot even be called an economic reform. One papers are replaced with others. It does not have any direct impact on the economy.