Commissioning of social and cultural projects in the regions

Financial and economic crisis had a significant impact on the construction of social and cultural facilities (sporting, educational and health). Regional budgets continue funding such projects. Funding from the state budget the construction of facilities that will not generate revenues in the foreseeable future, is still a priority for the local authorities, but the completion of their construction is postponed due to the lack of funds.

Budgets, allocated for the construction of social and cultural facilities in all spheres and all departments in 2011 are close to 100% exhaust. The only budgets that have not yet exhausted their funds to full extent, are budgets of the Minsk and Vitebsk Regional Executive Committees, however they have already exceeded 95% margin.

Social and cultural facilities make about 12% of all construction projects (43% – industrial, 34% – housing, 11% – infrastructure). Construction plans of such facilities have not been reviewed in 2012. Moreover, the priority is given to large-scale facilities (“Ice Palaces”), rather than, for instance, to kindergartens – with Grodno region the only exception.

Meanwhile, the lack of public funding and financial problems of regional councils do not allow for timely completion of construction projects, which results in the accumulation of protracted construction.

Local authorities tend to fill in the lack of funding at the expense of profit-making industrial enterprises. Due to the deterioration of the enterprises’ financial state as a result of the crisis and the increased number of unprofitable and low-profit enterprises (which is growing steadily) any additional financial burden has a negative impact on the competitiveness of the Belarusian industry.