lukashenko Plans to Cut Funding for Social Programs in Belarus

Minsk is facing serious economic challenges due to a sharp decline in exports of goods within the Eurasian Economic Union (EAEU). Surplus production and the loss of traditional markets among allies and partners have led to economic stagnation. In the first half of 2025, the industrial growth rate was only 0.3 %, which is significantly lower than the 1 % recorded a month ago. Industrial production has de facto stopped: the manufacturing sector is showing minimal growth of 0.1 %, while agriculture has declined by 8 %.

Only domestic investment and construction are showing positive dynamics. Investments in fixed assets grew by 14 %, and the volume of housing commissioned increased by 9.5 %. However, these factors do not compensate for the overall economic downturn.

Against the background of these problems, lukashenko is looking for ways to cover debt obligations, which will reach $14 billion in the next three years. Among the measures under consideration – reduction of social programs and an active search for new markets.

It should be pointed out that russia, a key partner of Belarus in the EAEU, has also reduced budget expenditures, having cut almost $2 billion from social programs.