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© 2004 International Monetary Fund

November 2004

IMF Country Report No. 04/361

Republic of Belarus: Report on Observance of Standards and Codes—Fiscal Transparency Module

This Report on the Observance of Standards and Codes on Fiscal Transparency for the Republic of Belarus was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on November 4, 2004. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of the Republic of Belarus or the Executive Board of the IMF.

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Report on the Observance of Standards and Codes (ROSC)

Fiscal Transparency Module

Prepared by the Fiscal Affairs Department

Approved by Michael Deppler and Teresa Ter-Minassian

November 4, 2004

Executive Summary

This report provides an assessment of fiscal transparency practices in Belarus in relation to the requirements of the IMF Code of Good Practices on Fiscal Transparency based on discussions with the authorities and other organizations, the authorities’ response to the IMF fiscal transparency questionnaire, and other sources of information. The IMF Manual on Fiscal Transparency ( should be consulted for further explanation of the terms and concepts discussed in this report. The assessment is based on the institutional and legal framework at the time of the IMF mission (April 21-30, 2003).1

Belarus meets the requirements of the fiscal transparency code in some important areas. There is a comprehensive legal and administrative framework for management of budget resources. The Budget systems law contains an explicit commitment to an open and transparent budget process, and budget coverage improved considerably with the inclusion of five major extrabudgetary funds into the budget in 1998. Budget execution mechanisms are quite effective, and budget execution reports are of consistent quality. The authorities are planning a number of important reforms to further improve fiscal management.

There are several areas where current practices fall short of the fiscal transparency code and improvements are required. In many of these areas, significant improvements could be realized quickly. There is little reporting on the public enterprise sector. Quasi-fiscal activities are widespread. The government produces considerable amounts of fiscal data and analysis, and more of this information could be made publicly available in a systematic way. Budget estimates are not based on a realistic medium-term macroeconomic framework, and do not reflect important fiscal risks. The budget fails to fully disclose the activities of government agencies, and the fiscal relationships between the central and local government are not fully defined. The Treasury does not yet cover the power ministries. The mechanisms for external assurances of the integrity of the fiscal processes need significant strengthening.


  • I. Introduction

  • II. Description of Practice

    • A. Clarity of Roles and Responsibilities

    • B. Public Availability of Information

    • C. Open Budget Preparation, Execution, and Reporting

    • D. Assurances of Integrity

  • III. IMF Staff Commentary

Abbreviations, Acronyms, and Websites

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Belarus: Basic Data

Type of government: Unitary Presidential Republic with bi-cameral Parliament

Fiscal year: Calendar

Population (December 2002): 9.9 million

GDP (2002): Rbl 25,5 trillion ($14,3 billion)

Debt/GDP (2002): 11 percent

Republic of Belarus: Report on Observance of Standards and Codes—Fiscal Transparency Module
Author: International Monetary Fund