OREANDA-NEWS. April 26, 2011. Belarus’ consolidated budget deficit is expected to be kept within 1.5% of GDP in 2011, First Deputy Governor of the National Bank of Belarus (NBB) Nikolai Luzgin told a news briefing in Minsk.

“The Belarusian government and the NBB will streamline budget expenses to keep the deficit within 1.5% of GDP this year.”

He added that consolidated budgets of regions and Minsk would be implemented within adopted spending targets for 2011.

In turn, Deputy Prime Minister Sergei Rumas noted that budget expenditures would be slashed on the republican level, without affecting local budgets. “Specifically, the state investment program will be cut by around 30%. We will exclude the construction of new facilities and invest these funds in completion of the facilities we are supposed to finish this year,” he explained.

Capital expenditures of budget organization will be reduced to around 80% of the level reported in 2010. “This reduction will be mostly through a decrease in purchases of imported equipment and limitations on capital repairs of buildings run by budget organizations,” Rumas said.

Furthermore, Belarus will reduce expenses on current operations of budget-financed organizations. “They will be set at levels sufficient for the organizations to perform their functions. We believe this requirement stands around the 2010 level,” Rumas said. According to him, social expenditures will be unaffected.