OREANDA-NEWS. February 11, 2011. In the current five-year period the subsidies for housing and utilities services for households will be cut in Belarus down to 40%.

In his words, the relevant program has already been developed. It takes into consideration the increase in salaries and was reconciled with the Finance Ministry, Economy Ministry and Labor Ministry. The program provides for the gradual increase in the compensation for the housing and utilities services by households, without any drastic leaps. By the end of this five-year period, the compensation rate for the housing and utilities services should reach 60%, while households will have to pay for electric energy in full.

The cross-subsidization should be eliminated in the current five-year period. After all, almost everywhere in the world the tariffs for gas, electric and heat supply are higher for households than for legal bodies, which helps cheapen the products and raise their competitiveness. Belarus is going to follow suit.

The ministry suggested cutting down on subsidies beginning this year, but the proposal was rejected by the head of state. At present, the Ministry of Housing and Utilities Services and other interested government bodies are working on the relevant proposals. “We need to thoroughly study the prime cost of each service and show that all the expenses are justified,” Vladimir Belokhvostov emphasized.