Belarusian households set a record of consumption in 2005. Consumer spending per the average Belarusian family amounted to 573,000 rubels a month, which 34.5 percent more than in 2004. Monetary incomes rose to 678,000 per family per month, 34.2-percent rise compared with the level of 2004. As many as 3.72 million households spent more than $14 billion last year. This is $3.5 billion more than in 2004.<br />
The growing "pie" of the Belarusian economy was certainly distributed unevenly. The capital city of Minsk was in a privileged situation as usual. The rich get richer faster than the poor. Nevertheless, Belarus saw domestic capital growing in 2005. However, the largest part of the increase was spent on current consumption, rather than on investment for the future.<br />
To determine a structure of revenues and expenditures of Belarusian households, the Ministry of Statistics and Analysis conducted a poll among 4,868 families of the total number of 3.72 million. The average size of the Belarusian family is 2.6 people. One-member households account for 24.6 percent against 23.5 percent in 2004. <br />
The most common family is two people. They are 27.4 percent compared with 28.4 percent in 2004. The share of families consisting of five or more members is still very low, 6.5 percent. Families with children are 37.8 percent. There has been a decrease in the number of families with three or more children, from 2.1 percent in 2004 to 1.9 percent in 2005. As many as 28.7 percent of the households do not have working members. This means that about 2.8 million people are supported solely by the state and/or relatives.<br />
The monthly disposable income, both monetary and non-monetary, of the average Belarusian household amounted to 713,000 rubels, or $332, in 2005. This is $128 per capita. The figures for 2004 are 543,000 rubels per household, or $97 per capita. Monetary incomes account for 91.3 percent of all disposable incomes. The remaining part is non-monetary, such as self-grown food, 6.9 percent, and social benefits and subsidies in kind, 1.8 percent. So, losing harvest from dachas and domestic plots is more serious for Belarusian families than losing state subsidies.<br />
Monetary incomes in cities are about 30 percent higher than in the countryside. As the same time, rural residents have almost three times more income in kind from their land plots. In monetary terms, the average rural family gets self-grown food worth of $38 per month. This is 8.6 times more than the amount of transfers that rural people get from public budget. Despite the fact that living standards in the countryside are lower, urban residents get 70 percent more subsidies from the state.<br />
Belarus is slowly but surely moving toward a typical market economy structure of prices. The share of food in the structure of spending is shrinking. It was 42.4 percent in 2005. The share of other expenditures remains almost unchanged. The only exception is steady growth of spending on communication services, such as the Internet and mobile phones.<br />
Households continued to save on utilities in 2005. The government's freezing of prices for housing services before the presidential election in March 2006 created the illusion of full adaptation to market prices in many households. But harder times are still ahead. As long as spending on utilities is artificially restricted and as long as the country does not have a full-fledged market of educational and medical services, the structure of spending will keep changing. Sooner or later Belarus will have a structure of spending characteristic of Western households.<br />
Entertainment, recreation and eating-out are not in the structure of spending of many households. Just 45.7 percent of them spent some money on cafes and restaurants in 2005. That figure had been more or less the same for the three years before. About 7.3 percent of Belarusian families did not buy any new clothing in 2005 and 10.1 percent did not buy any new footwear. However, it has to be noted that the respective spending remains rather low. In particular, families that did buy clothing last year spent $212 on it within one year, or about $82 per person.<br />
About 23.5 percent of families afforded to buy furniture in 2005, an increase from 18.6 percent in 2004. However, the average annual spending on furniture was just $218 per family. An increasing number of families spend on pre-school education for their children: 9.6 percent in 2004 and 11.1 percent in 2005. As many as 37.4 percent of families spend $140 per year on education.<br />
More Belarusians drive their own cars. Almost 41 percent of families spent $256 per year on maintaining their vehicles in 2005 compared with 37.9 percent and $206, respectively, in 2004. So, Belarusian cities are likely to see more traffic jams. Nearly 73 percent of the households spent money on keeping their domestic farms. Forty-five percent said that they made savings with banks worth of $300 per year. One year before the number of such families was 36.5 percent and the saved amount was smaller, $206. It looks like there is growing confidence in the banking system.<br />
Just 4.7 percent of families were concerned about building or buying real property - $856 per year - which is about the same as in 2004, 4.5 percent and $1,316, respectively. Skyrocketing prices for real property prevent many from even starting to make investment in housing construction. Minskers significantly differ from residents of other populated areas. They eat out two times more frequent than people who live in regional centers. People in the capital city spend much more person hygiene items (2.2 percent), public transport (3.6 percent) and communication services (3.8 percent). They also spend more than others on utilities (8.5 percent).<br />
At the same time, Minskers spend less on food (39.9 percent of their total spending). The respective figure for rural areas is 45 percent. People in the countryside spend more on alcohol (3.7 percent). <br />
In the households of pensioners, food accounts for 57.2 percent of spending and utilities for 9.2 percent. Despite the growth of incomes in the country, pensioners - there are about one million senior people living separately - are more prone to the risk of poverty. The second risk group is rural families. Their monetary spending is 22.6 percent lower than the average for the country. In Minsk, for comparison, spending is 36.1 percent higher than the average.<br />
The smallest monetary spending is registered in the Homyel region, 11.5 percent smaller than the average for the country. Consumer spending is the lowest in the Mahilyow region, 14.1 percent lower than the average.<br />
The growth of incomes has led to change in spending on food. The average Belarusian family spent $113 per month in 2005 compared with $87 in 2004. Meat is the main item in food spending, accounting for about 32 percent. Last year Belarusian people ate more fish and seafood, as well as more fruit and vegetables. To spend additional income on food is pleasant but not always wise, as the Belarusians do not have much saved for forthcoming increases in prices for utilities, transport, education and medical services.</p>