The government invests in the public sector as the security forces shore up the state budget with fines
The leadership increases support for state-owned companies to stimulate economic growth and keep unemployment low. The role of the security forces in the economy continues to grow as state resources increasingly depend on fines and expropriations.
The financial penalties for dissent continue to grow. The authorities compensate for the shrinking budget by forcing the donors of independent crowdfunding platforms to transfer large sums to social support. The KGB has created a special department to work with IT specialists.
According to independent investigators, the security forces financially benefit from the migration crisis.
Two objects of internal troops of the Ministry of Internal Affairs were added to the state investment program.
There are plans for strict regulation of road transport, and security forces’ control over minibuses and taxis will be significantly strengthened.
Heavy state investment in the public sector and import substitution measures continue. In 2022, state support for state-owned enterprises increased 105 times to almost 3 billion BYN. The Gomselmash state company plans to produce at least 100 harvesters for farms in each region. The Ministry of Industry is arranging funds to create an experimental Belarusian electric car. Price regulations have been amended to favour domestically produced goods.
Despite large public sector cash injections resuming, Belstat recorded deflation in May.
The leadership is trying to mitigate the negative effects of planned restrictions on small businesses as officials continue to debate the entrepreneurs bill. The veto on registering new individual entrepreneurs in Minsk will be retained.
Average incomes are decreasing, as consumption levels are supported by depleting foreign exchange reserves.
The pension fund deficit cannot be solved by raising the retirement age. In 2022, slightly more than BYN1.3 billion of discretionary funding was diverted to the Social Protection Fund.
Regime guards continue to harass Lukashenka’s opponents in absentia. Prosecutors are demanding a sentence of 25 years under “enhanced regime” for ex-restaurateur Vadim Prokopiev.
Election organizers are introducing additional restrictions on independent election monitoring.
The Council of Ministers and the National Bank will continue to stimulate the economy by investing in state-owned companies and creating competitive advantages for state-sector products.
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Situation in Belarus