Government Ready to Raise Housing Tariffs to Get EurAsEC Loan

01.07.2011 15:10

Government and National Bank have agreed on EurAsEC Crisis Fund conditions to remit the second tranche of the loan. Tight fiscal policies, including raising tariffs for housing and communal services, as well as passenger transport, are among the commitments made by the Belarusian authorities.

Thus, under the given conditions, utility rates for the population have to be consistently increased, so that to cover at least 30% of the costs in 2011 at the expense of the population, 35% — in 2012 and 40% — in 2013. Certain types of housing services, and their excess consumption, will be reduced to the level of cost price, BelaPAN.

Tariffs on passenger transport services are expected to increase by the end of 2011 to cover 70% costs of their provision,while in 2012 — 85% and in 2013 — less than 90%.

General government budget deficit is projected to reach 1.5% of GDP in 2011 and 1% of GDP in 2013.

In addition, we plan to increase the tax burden on the raw materials sector, 1.5 times increasing tariffs on exported potash fertilizers, 12 times — the tax rate on the extraction of potassium salts and 30 times — on the crude oil extraction.

As Telegraf previously reported, according to the achieved agreement, $3 billion will be allocated from the EurAsEC Crisis Fund to Belarus within three years. In this case the loan payment will be made in installments — in Belarus has already received the first tranche of $800 million.