RESOLUTION OF COUNCIL OF MINISTERS OF THE REPUBLIC OF BELARUS

of March 12, 2020 No. 143

About the State program "Management of public finances and regulation of the financial market" for 2020 and for the period till 2025

The Council of Ministers of the Republic of Belarus DECIDES:

1. Approve the State program "Management of public finances and regulation of the financial market" for 2020 and for the period till 2025 (further - the State program) it (is applied).

2. Determine:

2.1. responsible customer of the State program Ministry of Finance;

2.2. customers of the State program Ministry of Finance, National assembly of the Republic of Belarus, Constitutional Court of the Republic of Belarus, State Control Committee, Prosecutor General's Office, National Bank, Central commission of the Republic of Belarus on elections and holding republican referenda, National academy of Sciences of Belarus, National Statistical Committee, Ministry of anti-monopoly regulation and trade, Ministry of Internal Affairs, Ministry of Health, Ministry of Foreign Affairs, Ministry of Culture, Ministry of Education, Ministry of Taxes and Tax Collection, Ministry of Emergency Situations, Ministry of Natural Resources and Environmental Protection, Ministry of Communications and Informatization, Ministry of Agriculture and Food, Ministry of Sport and tourism, Ministry of Transport and Communications, Ministry of Labour and Social Protection, Ministry of Economics, Department of Energy, Ministry of Justice, State committee on property, State committee on standardization, State Customs Committee, regional executive committees and Minsk Gorispolkom, public institution "Administration of the Park of high technologies", Belarusian Society of the Red Cross, Belarusian Chamber of Commerce and Industry, National state broadcasting company, Republican center for improvement and sanatorium treatment of the population.

3. To customers of the State program within the competence:

3.1. perform:

coordination of activities of contractors of actions of subprogrammes of the State program;

monitoring of implementation of subprogrammes of the State program;

3.2. represent according to the legislation to the Ministry of Finance reports on implementation of the State program.

4. To the Ministry of Finance:

4.1. post the State program on the official site in two weeks from the date of official publication of this resolution;

4.2. perform coordination of activities of customers of the State program during its realization;

4.3. make offers on refining of the State program taking into account the program of social and economic development on the following five-years period.

5. Confer the personal responsibility for timely and high-quality implementation of actions of the State program on the Minister of Finance, chairmen of regional executive committees and the Minsk Gorispolkom, and also heads of the state bodies and other state organizations which are customers of the State program.

6. Declare invalid the resolution of Council of Ministers of the Republic of Belarus of November 15, 2016 No. 922 "About the Republican development program of insurance activity for 2016-2020".

7. This resolution becomes effective from the date of its acceptance.

Approved by the Resolution of Council of Ministers of the Republic of Belarus of March 12, 2020 No. 143

The state program "Management of public finances and regulation of the financial market" for 2020 and for the period till 2025

Chapter 1. General provisions

The state program is developed taking into account provisions of the following main documents:

The program of social and economic development of the Republic of Belarus for 2016-2020 approved by the Presidential decree of the Republic of Belarus of December 15, 2016 No. 466;

The national strategy of sustainable social and economic development of the Republic of Belarus for the period till 2030 approved by Presidium of Council of Ministers of the Republic of Belarus (the minutes of Presidium of Council of Ministers of the Republic of Belarus of May 2, 2017 No. 10);

The program of activities of the Government of the Republic of Belarus for 2018-2020 approved by the resolution of Council of Ministers of the Republic of Belarus of October 31, 2018 No. 774;

the strategy of reforming of management system public finances of the Republic of Belarus determined by the resolution of Council of Ministers of the Republic of Belarus of December 23, 2015 No. 1080;

the development strategy of the financial market of the Republic of Belarus till 2020 approved by the resolution of Council of Ministers of the Republic of Belarus and National Bank of the Republic of Belarus of March 28, 2017 No. 229/6;

the strategy of national debt management of the Republic of Belarus for 2015-2020 approved by the Prime Minister of the Republic of Belarus on March 17, 2015 No. 39/810-892-dsp.

The state program is directed to increase in efficiency of functioning of management system by public finances, development of separate segments of the financial market. Implementation of the State program will promote achievement by the Republic of Belarus of the Sustainable development goals containing in the resolution of the General Assembly of the United Nations of September 25, 2015 No. 70/1 "Transformation of our world: The agenda in the field of sustainable development for the period till 2030".

Participate in accomplishment of the State program:

the state bodies and other state organizations and also subordinated to them or which are their part (system) of the organization;

professional participants of the security market, including Belarusian Currency and Stock Exchange open joint stock company, republican unitary enterprise "Republican Central Securities Depository";

insurance companies, including the republican unitary enterprise "Belarusian National Reinsurance Organization";

the organizations performing intermediary activities in the financial market;

other organizations.

Chapter 2. Structure and customers of the State program

The state program includes:

the subprogramme 1 "Ensuring stability of the budget system and increase in effective management of public finances" (customers – the Ministry of Finance, National academy of Sciences of Belarus, the Ministry of anti-monopoly regulation and trade, the Ministry of Health, the Ministry of Culture, the Ministry of Education, the Ministry of Taxes and Tax Collection, the Ministry of Agriculture and Food, the Ministry of Sport and tourism, the Ministry of Labour and Social Protection, the Ministry of Economics, the State Customs Committee, regional executive committees and the Minsk Gorispolkom, the Republican center for improvement and sanatorium treatment of the population);

the subprogramme 2 "National debt management, debt of local authorities and self-government" (customers – the Ministry of Finance, regional executive committees and the Minsk Gorispolkom);

the subprogramme 3 "Fiscal and customs regulation and administration in the Republic of Belarus" (customers – the Ministry of Taxes and Tax Collection, the Ministry of Finance, the State Customs Committee);

the subprogramme 4 "Effective functioning of the security market" (customers – the Ministry of Finance, National Bank, the Ministry of Foreign Affairs, the Ministry of Taxes and Tax Collection, the Ministry of Economics, the State committee on property, regional executive committees and the Minsk Gorispolkom, public institution "Administration of the Park of high technologies");

the subprogramme 5 "Development of insurance activity" (customers – the Ministry of Finance, National Bank, the State committee on property);

the subprogramme 6 "Regulation of financial accounting, the reporting and audit in the corporate sector" (customers – the Ministry of Finance, National Statistical Committee, the Ministry of Education, the Ministry of Natural Resources and Environmental Protection, the Ministry of Labour and Social Protection, the Ministry of Economics, the State committee on standardization);

the subprogramme 7 "State regulation in field of activity with precious metals and gemstones" (the customer – the Ministry of Finance);

the subprogramme 8 "The international activities of the Republic of Belarus" (customers – National assembly of the Republic of Belarus, the Constitutional Court of the Republic of Belarus, the State Control Committee, the Prosecutor General's Office, the Central commission of the Republic of Belarus on elections and holding republican referenda, National Statistical Committee, the Ministry of Internal Affairs, the Ministry of Health, the Ministry of Foreign Affairs, the Ministry of Culture, the Ministry of Taxes and Tax Collection, the Ministry of Natural Resources and Environmental Protection, the Ministry of Communications and Informatization, the Ministry of Agriculture and Food, the Ministry of Sport and tourism, the Ministry of Transport and Communications, the Ministry of Labour and Social Protection, the Ministry of Finance, the Ministry of Emergency Situations, the Ministry of Economics, the Department of Energy, the Ministry of Justice, the State committee on standardization, the State Customs Committee, Belarusian Society of the Red Cross, Belarusian Chamber of Commerce and Industry, National state broadcasting company).

Chapter 3. Purposes and tasks of the State program

The purposes of the State program are ensuring long-term balance and stability of the budget system, improvement of quality of management of public finances, further market development of securities, insurance and auditor activity.

For achievement of effective objectives the solution of the following tasks within subprogrammes is provided:

subprogramme 1 "Ensuring stability of the budget system and increase in effective management of public finances":

ensuring balance republican and local budgets within the available income and sources of financing of deficit (the extent of surplus) of the budget;

increase in efficiency of budgetary planning and budgeted expenses;

equalization of financial opportunities of local budgets and stimulation of regions to building-up of own profitable base;

implementation of modern approaches and technologies in the sphere of management of public finances;

subprogramme 2 "National debt management, debt of local authorities and self-government":

unconditional accomplishment of all debt obligations and preserving the size of public debt at the safe level;

decrease in risks of debt portfolio, including currency, percentage, operational it is risk, risks of refinancing and liquidity;

decrease in the debt guaranteed by the Republic of Belarus;

preserving debt load of budgets of regions at economically safe level;

subprogramme 3 "Fiscal and customs regulation and administration in the Republic of Belarus":

enhancement of the tax and customs legislation;

increase in efficiency of tax and customs administration;

creation of conditions for increase in level of execution by payers of obligation on tax payment, charges (duties);

subprogramme 4 "Effective functioning of the security market":

market development of shares;

market development of bonds;

development of infrastructure of the security market;

implementation and development of the mechanism of placement of government bonds by means of use of channels of remote bank servicing;

subprogramme 5 "Development of insurance activity":

liberalization of insurance activity and forming of favorable conditions for functioning for insurance companies of all patterns of ownership;

stimulation of development of types of voluntary insurance, optimization of procedure and conditions of carrying out compulsory insurance;

subprogramme 6 "Regulation of financial accounting, reporting and audit in the corporate sector":

enhancement of regulation of financial accounting and the reporting in the corporate sector;

development of system of the non-financial reporting in the corporate sector;

enhancement of auditing regulation taking into account the international practice;

improvement of quality of rendering auditor services;

the subprogramme 7 "State regulation in field of activity with precious metals and gemstones":

ensuring forming of the State fund of precious metals and gemstones of the Republic of Belarus and management of sources of values in it;

implementation of actions for the purpose of realization of powers for state regulation in field of activity with precious metals and gemstones;

subprogramme 8 "The international activities of the Republic of Belarus":

ensuring national interests, realization of foreign and external economic policy of the Republic of Belarus (the diplomatic and consular relations of the Republic of Belarus with other states);

promotion of initiatives and assistance to social and economic development of the Republic of Belarus by interaction with the international organizations;

promotion of political, economic and social capacity of the Republic of Belarus abroad and improvement of image of the country.

The result characterizing goal achievement of the State program and the solution of the called tasks will be accomplishment according to summary target indicators and target indicators according to appendix 1. These summary target and target indicators are created proceeding from the principles of need and sufficiency for confirmation of efficiency of implementation of the State program.

Accomplishment of complex of actions of the State program according to appendix 2 is provided.

The organizational and technical measures necessary for implementation of the State program are provided in appendix 2-1.

Data on comparability of summary target indicators, target indicators of the State program to indicators of goal achievement of sustainable development are provided in appendix 4.

Chapter 4. General characteristic of the subprogramme 1 "Ensuring stability of the budget system and increase in effective management of public finances"

The main link of financial system of the country is the budget. In case of creation and budget implementation planning of the income and expenses shall be performed so that to provide accomplishment of strategic objectives and tasks of social and economic development of the country in general and certain regions, keeping at the same time the budget stability and balance. It is essentially important to consider as much as possible possible risks and to provide predictability and stability of budget implementation.

Forming of the budget for the last years is performed using the budget rule providing reservation of part of budget receipts in the form of surplus for creation of source of repayment of part of debt obligations of the Government of the Republic of Belarus. Besides, the maximum level of the tax burden of economy shall not exceed 26 percent from gross domestic product (further – GDP), but at the same time shall provide unconditional accomplishment of social obligations to citizens and execution of debt obligations of the state before creditors and investors.

In the conditions of the existing debt load on the budget establishment and observance of more tough restrictions on acceptance of new payment commitments, and also strengthening of strategic and tseleoriyentiruyushchy nature of the budget, expansion of scope of program and target budgeting are required.

The majority of social services is rendered to citizens at the expense of means of local budgets. Now expenses of local budgets constitute more than a half of expenses of the consolidated budget. The interbudget relations are component of the budget relations and the main instrument of achievement of balance of interests of the central and regional authorities. One of the main objectives in case of distribution of financial resources by the state are equalization of fiscal capacity of regions, creation of equal conditions for accommodation at them, and also forming of incentives for development.

Ensuring long-term balance of the budget is the major prerequisite for preserving macroeconomic stability which in turn creates basic conditions for economic growth, improvement of the investment climate, increase in competitiveness of subjects of economic activity. With respect thereto maintenance of safe level and structure of public debt, forming and financing of budgeted expenses without growth of debt load is important.

For the purpose of ensuring balance republican and local budgets within the available income and sources of financing of deficit (the extent of surplus) of the budget the following is provided.

Strengthening of profitable base and limiting observance of amounts of expenses of the budget.

The level of centralization of financial resources (calculated as the relation of the income of the consolidated budget to GDP) over the last ten years is significantly reduced due to reduction of quantity of taxes, annual decrease in rates of taxes, optimization of taxation bases and other actions.

In 2018 the level of centralization of financial resources constituted about 31 percent from GDP (from them at the expense of tax income – 25,9 of percent, non-tax income and non-paid receipts – percent 5,1).

In the medium-term period decrease in level of centralization in connection with completion of realization in the Russian Federation of "tax maneuver" in 2020-2024 will continue. As a result – reducing receipts of export customs duties on oil and oil products. Centralization of financial resources in 2020 is predicted at the level at least 27,5 of percent from GDP and in the years ahead – at least 27 percent from GDP.

Strengthening of profitable base of the budget is supposed within harmonization of excise policy for alcoholic products and tobacco products in state members of the Eurasian Economic Union (further – EEU), review of the lowered rates of separate taxes, work on creation of the mechanism of efficiency evaluation of tax benefits and acceptance on its basis of decisions on cancellation of inefficient tax benefits.

Measures of tax policy will be directed to decrease in dependence of profitable base of the budget on environment of the external demand on primary goods and stimulation of investment and innovative activity.

Keeping social vector of expenses, the budget provides financing mainly of current expenses (salary payment, payment of utilities, medicines and food, subsidizing of housing-and-municipal and transport services for citizens), and also debt maintenance expenses. Totally about a half of the consolidated budget goes for financing of social expenses.

Taking into account consistently pursued policy on wages increase in the budget sphere in the medium-term period growth of financing expenses of the social sphere will continue. At the expense of expense optimization on the state support increase in specific weight of expenses on the social sphere in 2020 in expense structure of the budget will constitute 0,3 of percent point. The amounts of financing of expenses on the social sphere will be determined within implementation of state programs and subprogrammes in the corresponding fields of activity.

Balance of the budget will be promoted by respect for the budget discipline and introduction of restrictions for acceptance of new payment commitments. The assignments provided in the budget shall provide unconditional accomplishment of social obligations of the state to the population (without increase in accounts payable on budget funds).

Reducing public debt and decrease in load of the budget for repayment and servicing of public debt will allow to increase consistently in the medium term financing expenses of the capital investments. At the same time the main share of the capital investments will go for financing of infrastructure projects. The construction of production facilities is planned to be performed mainly at the expense of own and borrowed funds of the organizations of the real sector.

Taking into account realization of the specified approaches and accomplishment of the set restrictions will balance of the budget is kept, social guarantees, timely and complete repayment and servicing of public debt without increase in the tax burden of economy are provided.

Increase in stability of functioning of system of the national social insurance.

For row of years (in 2015-2017) balance of the budget of state non-budgetary fund of social protection of the population of the Republic of Belarus was provided with attraction of transfers from the republican budget. In 2018 the total amount of subventions in the budget of fund constituted 810, 6 million rubles, at the same time means from the republican budget were not aimed at providing balance of the budget of fund.

Violation of balance of the budget of fund is caused mainly by change of the demographic situation which is characterized by increase in number of persons is more senior than working-age and reducing number of the citizens occupied in economy. For the purpose of adaptation of the pension system to the changing demographic conditions and creation of conditions for economically reasonable increase in pensions since 2017 step-by-step raising the retirement age, and also requirements to insurance years of service for superannuation is performed.

In addition to parametrical changes of the existing pension system for balance of the budget of fund it is necessary to take measures for streamlining of its expenses with transferring of financing of expenses on the republican budget, "non-core" for the budget of fund. For this purpose adjustment of regulatory legal acts in the sphere of children's improvement and social security will be required.

Decrease in the fiscal risks created by the companies and also amounts of the state support given to the organizations of real production sector.

Economic indicators of work of the organizations of real production sector influence stability of the budget system. With respect thereto they shall be analyzed on system basis by the republican state bodies, regional executive committees and the Minsk Gorispolkoms supervising the corresponding fields of activity.

For January 1, 2019 the total debt of the organizations of real production sector before the republican budget and foreign creditors constituted 13 billion US dollars in equivalent. It is created in three directions:

external state loans – 9, 9 billion US dollars;

budget advances, loans and the performed guarantees of the Government of the Republic of Belarus – 4, 7 billion rubles;

the credits of the organizations of the woodworking industry assigned on the budget – 920 million US dollars.

Identification and impact assessment of fiscal risks which are understood as the variations of the predicted budget (tax) receipts from the obligations of the organizations established according to the legislation having monetary value before republican and (or) local budgets, and also possible expenses of the budget for execution of guarantees on the credits issued under guarantees of the Government of the Republic of Belarus, regional executive committees and the Minsk Gorispolkom are necessary for ensuring stability of the budget system.

Accounting of fiscal risks when forming the budget will promote improvement of quality of the management decisions, timely taking measures directed to minimization of losses of the budget.

Until the end of 2020 it is provided to finish the organization of complex assessment work of fiscal risks and in the years ahead to perform their monitoring on permanent basis. Carrying out by state bodies on system basis of the analysis of financial and economic organization activity, having obligations to the relevant budget, and forming of system of assessment of fiscal risks will allow to take timely measures for minimization of negative impact of these risks on the budget and to manage effectively them.

Monitoring of fiscal risks will be carried out by the Ministry of Finance with use of the corresponding information product. Development of offers on decrease in risks, development of actions for stabilization of financial activities of the organizations and system control of their accomplishment will be exercised by the relevant state bodies.

General results of the carried-out assessment work of fiscal risks are offered to be formalized annually in the annual statement containing the analysis of fiscal risks for republican and local budgets for the medium term on state bodies, types of activity and the most problem organizations and to consider in the Government to the Republic of Belarus along with complex of actions for stabilization of financial activities of the organizations.

Overall assessment of probability of approach of fiscal risks will be considered when forming indicators of the budget for the next financial year, decision making about attraction of external state loans (for the purpose of provision to users of external loans and external loans under guarantees of the Government of the Republic of Belarus) for implementation of investment projects, provision of guarantees for the Government of the Republic of Belarus, regional executive committees and the Minsk Gorispolkom on the credits issued by banks of the Republic of Belarus and also when forming the forecast of social and economic development.

Along with taking measures to decrease in fiscal risks reducing amounts of the state support of real production sector is urgent.

For reducing amounts of the state support given to the organizations of real production sector are provided introduction of practice of regular monitoring of terms for crediting (including performed with compensation of losses (compensation, interest payment) on the credits of banks at the expense of means republican and local budgets) taking into account the developing average interest rates in the credit market and financial and economic condition of borrowers, taking measures to review of interest rates for the soft credits granted within financing of state programs and actions in previous years.

Also unconditional observance of the moratorium on adoption of new decisions on rendering the state support for implementation of the current organization activity will be required.

Taking into account taking measures to ensuring decrease in 2020 of amounts of the budget participation in the state support of real production sector for 10 percent at least new decisions directed to rendering such support will be considered only taking into account offers on optimization or cancellation of the operating measures of support of the organizations of real production sector (on the basis of efficiency analysis).

Liquidity management improvement of quality.

The maximum consolidation of public funds on the single treasurer account is necessary condition of effective management of public finances. The main benefit of consolidation consists in providing continuity of execution of undertaken obligations with the state irrespective of fullness of the budget.

Centralization of all remaining balance of means of the state on the single treasurer account promotes increase in efficiency of measures of management. The objective information about the size and movement of cash flows on the single treasurer account allows to provide financing of cash gaps.

In the Republic of Belarus gradual expansion of scope of the means considered on the single treasurer account is performed. The complex regulatory legal base is for this purpose created.

In 2016 step-by-step money transfer, state bodies being at the command and state-financed organizations according to the legislation, into the single treasurer account began. At that time the amount of these means considered out of the single treasurer account made about 9 percent of expenses of the republican budget.

In 2016-2018 accounting on the single treasurer account of separate means of the state bodies remaining at their order, for example means, received in case of forced execution of court decrees and executive documents of the Ministry of Justice, means of off-budget centralized investment funds and others is provided. By the Ministry of Finance the corresponding procedure of accounting of extrabudgetary funds on the single treasurer account is developed.

Now the amount of the extrabudgetary funds considered out of the single treasurer account is estimated in the amount of 1-1,2 billion rubles. Work on expansion of scope of the means considered on the single treasurer account will be continued. It is planned to make transfer into the single treasurer account of means, state bodies being at the command at which the greatest financial flows are created (The ministry of forestry, Department of protection of the Ministry of Internal Affairs and others).

Expansion of scope of the means considered on the single treasurer account will be provided also at the expense of the means received by state-financed organizations from the activities which are bringing in incomes. The amount of the specified means is estimated in the amount of 1, by 6 billion rubles. In case of decision making about this translation amounts of money, being at the disposal of the relevant state-financed organization, and also real opportunities of treasurer system for data management will be considered by resources.

Consolidation of the specified means on the single treasurer account will allow to expand considerably the resource base used by the Ministry of Finance for carrying out active transactions which purpose is attraction of additional resources in the budget. Besides, expansion of scope of the means considered on the single treasurer account will allow to avoid short-term borrowings in the domestic and foreign financial markets.

For the purpose of increase in efficiency of budgetary planning and budgeted expenses the following is provided.

Enhancement of planning system of the income.

Enhancement of mechanisms of planning of budget receipts is provided due to use of mathematical models of forecasting and automation of budgeting process according to the income. It will allow to provide unity of information for creation of forecasts and effective information interaction with all participants of the budget process.

For enhancement of mechanisms of planning of budget receipts development of system of administration of budget receipts is provided. The main participants having powers in the sphere of tax administration are the Ministry of Taxes and Tax Collection, the State Customs Committee and their territorial authorities.

Administration of non-tax income of the budget is regulated by a number of regulatory legal acts at all levels of the budget system and requires systematization. Introduction of system of administration of budget receipts will allow to order accounting of obligations to the budget, to strengthen financial control and to increase quality of planning of non-tax income of the budget.

Increase in expense efficiency of the budget.

Creation new, development and coordination of the available instruments of increase in efficiency of use of budgetary funds are provided. First of all development of institute of state programs is required. Results of implementation of state programs shall create information and analytical basis for acceptance of management decisions regarding increase in efficiency of public administration.

For the purpose of development of program and target method in the budget process in 2016 the legislation is in a complex processed. Since 2016 the medium-term financial programs determining possibilities of the relevant budget for financing of state programs annually are developed and affirm. Introduction of practice of distribution of the budget resources according to state programs will allow to plan results for the medium term and to effectively distribute expenses in the main directions of state policy, including with binding to functions of managers of budgetary funds, and also types of activity and the services rendered by state-financed organizations.

Are provided expansion of scope of program and target method due to forming of new state programs and inclusion in them of non-program expenses, and also enhancement of approaches to development of summary target and target indicators of state programs in the medium term, assessment of their results.

Forming of state programs is planned for 2021-2025 proceeding from priorities of social and economic development taking into account resource opportunities of the budget. At the same time it will be required to carry out efficiency evaluation of accomplishment of actions of the state programs realized in 2016-2020, it is rational to optimize amounts of budgetary appropriations on program actions.

Now planning of expenses of state-financed organizations is performed based on the disaggregated economically reasonable need for funds for content of the state-owned property which is in operational management of state-financed organizations, compensation of their workers, purchase of goods (works, services) and implementation of other expenses necessary for accomplishment of functions of state-financed organizations. Estimate planning and financing provide the high level of the budget discipline of receivers of budgetary funds and controllability of the budget in general.

At the same time application of such approach to planning of expenses does not create economic incentives for economy of resources and increase in efficiency of activities of state-financed organizations. Implementation of the regulatory methods of budgetary planning oriented to the cost of the budget service counting on one consumer, but not to itemized costs on content of states and property of the organizations is necessary.

Legal basis for implementation in certain spheres of the public relations of procedure for planning of expenses of the budget based on use of standard rates of expenses on one consumer and (or) in industry is established in the Budget code of the Republic of Belarus. Since 2019 these approaches are accepted on permanent basis in planning process of expenses of organizations of general secondary education, and also undergo approbation when planning expenses of organizations of preschool education.

Till 2025 it is necessary to expand scope of regulatory methods of budgetary planning with step-by-step scope of the most byudzhetoyemky directions in education (preschool, general secondary, professional, secondary vocational education), health cares (hospital), social servicing of the population (nursing homes for aged and disabled people, the territorial centers of social servicing of the population), cultures (the theatrical and spectacular organizations, libraries), physical culture and sport (children's and youth sports schools, the republican centers of the Olympic preparation, the centers of the Olympic reserve).

Financing of expenses in the social sphere is performed mainly at the expense of means of local budgets: in education and health more than 80 percent of industry expenses of the consolidated budget, culture – more than 70 percent, physical culture and sport – more than 50 percent are financed by these means. With respect thereto the scope of expenses regulatory methods of budgetary planning shall be the greatest at the local level.

For stimulation of transition of industries of the social sphere to use of regulatory methods of budgetary planning expansion of powers of managers of budgetary funds on management of the allocated budget settings (since stage of their approbation), and also provision of guarantees for not decrease in total amount of financing of expenses in connection with their optimization is supposed.

The enhancement of the mechanism of planning of expenses of local budgets on implementation of actions in agro-industrial complex directed to development of formular method of calculation of these expenses and its fixing in the Presidential decree of the Republic of Belarus of July 17, 2014 to No. 347 "About the state agrarian policy" with ensuring in the long term step-by-step reducing share of target (settlement) expenses, including subventions, is provided in total expenses on agricultural industry, fishing activities.

Realization of these actions will allow to provide increase in efficiency of use of budgetary funds for the account:

establishments of the regulated approaches to distribution of budget financing depending on the number of consumers of the budget services;

expansions of the rights of managers of budgetary funds on management of the allocated budget settings for achievement of the best result;

forming of incentives to optimization of network and states of state-financed organizations.

Increase in openness of the budget, including due to rapprochement of national system of financial accounting and the reporting with International accounting standards in the public sector.

One of the directions of increase in efficiency of expenditure of budgetary funds is increase in transparency of the budget process, ensuring openness of budgetary planning and involvement of citizens in it.

For the purpose of increase in openness of the budget the list of documents and information open for society and mass media is significantly expanded. On the official site of the Ministry of Finance on the global computer Internet "the budget for citizens", the interactive universal performance report consolidated, republican and local budgets, interactive information maps about execution of local budgets are provided.

Information on the directions of expenditure of means of local budgets is posted on the global computer Internet on the official sites of regional executive committees and the Minsk Gorispolkom. By 2023 it is supposed to implement in practice placement of this information on the websites of all executive and administrative organs of regional and district territorial levels.

With development of program and target method in the budget process in the medium-term period publication on the official sites of customers of state programs of plans and results of accomplishment of program actions, indicators of activities of subordinates (which are part, system) the organizations is planned.

Increase in openness of the budget will be reached also due to representation to the international organizations (The International Monetary Fund, the World Bank) according to obligations of the public finances this according to the statistics assumed by the Republic of Belarus and to the budget. It will promote promotion of interests and strengthening of line items of the Republic of Belarus on the international scene.

For improvement of quality and transparency of information on financial position and results of activities of the sector of public administration, and also acceptance of timely management decisions enhancement of system of financial accounting and the reporting in the sector of public administration is provided.

Now the organizations of the sector of public administration use four various charts of accounts: state-financed organizations, bodies of the State Treasury, local financial bodies, executive committees rural, settlement, city (cities of district subordination) Councils of deputies. Rules of conducting financial accounting and forming of the reporting for these organizations are also not unified. It significantly complicates reconciliation of data between them, and also interferes with the automated information collection and forming of the consolidated accounting records.

Reflection of transactions in financial accounting and forming of the reporting are based mainly on use of cash method with separate elements of charges that limits possibility of carrying out the analysis of condition of public finances and acceptance of management decisions. This approach does not correspond to the commonly accepted international practice and does not allow to provide transparency and comparability of information on activities of the sector of public administration for the international community.

For the purpose of the solution of the designated problems realization of number of the actions promoting harmonization of rules of conducting financial accounting and forming of the reporting by various organizations of the sector of public administration, and also their rapprochement with the international principles and standards is supposed.

One of key actions are development and deployment of the unified plan of accounts integrated with budget classification. Unification of procedure for reflection of accounting transactions by all organizations of the sector of public administration will provide comparability of accounting data and condition for realization of centralized approach to automation of their accounting activities.

The possibility of receipt of any accounting information, and also operational forming of accounting records in the automatic mode will be as a result provided that, in turn, will allow to increase its quality, informational content and transparency.

Integration of charts of accounts of financial accounting with budget classification will provide interrelation of processes of budgetary planning, budget implementation, financial accounting and forming of the reporting.

Rapprochement of national system of financial accounting and the reporting with International accounting standards in the public sector will provide uniformity and increase in comparability of financial information not only in country scales, but also at the international level. Increase on this basis of degree of trust from the international organizations, foreign investors will be one of the important steps simplifying access to the international markets of the capital and promoting reduction in cost of loan resources.

During the term of implementation of the State program number of national accounting standards and the reporting according to the stages of enhancement of national system of financial accounting and the reporting of the sector of public administration determined by the concept of reforming of national system of financial accounting and the reporting of the sector of public administration approved by the resolution of Council of Ministers of the Republic of Belarus of February 9, 2019 No. 82 will be developed.

Enhancement of normative and methodical providing and the organization of the budget process in the Republic of Belarus.

High-quality management of public finances requires the optimum organization of the budget relations at all stages of the budget process.

Financial and economic activities of more than 80 percent (about 8 thousand) of the organizations of the social sphere, and also number of executive committees of primary territorial level are provided on a centralized basis with auxiliary divisions under local executive and administrative organs (with total number about 14 thousand workers).

The presidential decree of the Republic of Belarus of December 23, 2019 No. 475 "About ensuring activities of state-financed organizations" executive committees of regional and basic territorial levels are given the right to create public institutions on ensuring activities of state-financed organizations (centers) that gives the chance in a complex to settle questions on the organization by the centers of financial and economic activities of state-financed organizations, creates prerequisites for further optimization of the budget relations.

Creation of the specified centers will allow to transfer separate functions of state-financed organizations, including supplying and accounting, to professional services, having exempted thereby data of the organization from need of content for the staff of the corresponding specialists.

One of the important areas of work on ensuring stability of the budget system and increase in effective management of public finances is equalization of financial opportunities of local budgets and stimulation of regions to building-up of own profitable base. Enhancement of approaches to planning of the income of local budgets is for this purpose provided.

Today the profitable base of local budgets on average for 80 percent is created at the expense of own sources of the income. Local budgets are provided with such stable sources as the income tax, the income tax of the non-state organizations, the income tax of the organizations which property is in municipal property, taxes on property.

Local authorities of management and self-government are granted the right to establish the local taxes and charges, privileges on taxes, charges (duties) which are completely paid to local budgets, to increase (to reduce) rates of taxes on property to separate categories of payers.

The pursued policy is directed to creation of equal financial opportunities and conditions for regions.

At the same time level of their economic development various. So, Minsk is completely self-sufficient, the Minsk region in general is provided with own resources for 90 percent, Grodno – for 72 percent, Brest – for 70 percent, Vitebsk – for 67 percent, Gomel and Mogilev – for 63 percent. At basic level dependence of budgets on resource support from the higher budget rather high (the number of local budgets with dependence on subsidies over 40 percent – 72, is lower than 20 percent – 15).

Level of dependence on subsidies of budgets of basic level depends on the amount of assignments from republican taxes, charges (duties) established by the relevant regional councils of deputies within the powers conferred by the legislation. In some cases withdrawal of part of taxes (the income tax and the income tax) arriving in the territories of areas in regional budgets with replacement with their grants in the corresponding amounts is result of adoption of such decisions.

With respect thereto increase in tax autonomy of regions will be provided due to enhancement of the mechanism of planning of the income of local budgets using single approaches at all levels of the budget system and increase in specific weight of own income of local budgets in total amount of receipts. The number of high-subsidized regions is planned to be reduced by quarter.

Equalization of profitable opportunities of budgets of areas and the budget of Minsk will be provided taking into account need of accomplishment of function of the capital by Minsk (by transfer of part of the means coming to the budget of Minsk in the form of the interbudget transfer in the republican budget and subsequent their redistribution for benefit of subsidized budgets of areas).

From the republican budget not decrease in amounts of the grants transferred to budgets of areas in the medium-term period is guaranteed. After implementation of actions on full implementation in the budget planning process of expenses according to standard rates on one consumer of the budget service transition to formular calculation of the size of the grants transferred to local budgets is possible.

Regarding stimulation of regional authorities to building-up of own profitable base it is advisable to develop and implement the mechanism of encouragement of heads and specialists of regional authorities for achievement of growth of amounts of the income which receipt depends on decisions and activities of regional authorities.

In general building-up of own profitable base of local budgets will be provided due to creation of new workplaces, high-quality administration of the income, identification of the new unaccounted taxation objects, effective management of municipal property, including by means of its involvement in economic circulation and so on.

Holding actions for support of business will allow to intensify creation of the new companies of small and medium business and will lead to increase in production of such companies and growth of tax revenues.

At the same time filling of budgets of regions directly depends on the success of implementation of plans of their development and measures taken on improvement of economic indicators.

For the purpose of increase in effective management of public finances the following is provided.

Complex carrying out number of transformations in the average and long term within the strategy of reforming of management system public finances of the Republic of Belarus.

Are planned development of regulatory bases regarding forming and budget implementation, financial accounting and the reporting, national debt management, internal financial control and audit, and also work on creation of the new integrated management information system by public finances.

Enhancement of system of internal financial control and audit.

Along with checks of legality and target use of public funds efficiency audit, and also assessment of reliability of internal control system of the processes performed in the organization shall be performed (planning and budget implementation, public procurements, financial accounting and the reporting, others).

Such systems are created practically in all European and Post-Soviet countries. At the same time special attention is paid to results of activities, risk management, ensuring accountability, cost efficiency and quality of provision of services by the organizations of public sector.

Heads of all levels of state bodies and other organizations shall bear responsibility not only for operating activiies of the organizations, but also for financial management and control.

Internal control as the comprehensive process realized by management and personnel of the organization is intended for providing guarantees of achievement of the following purposes: the ordered and effective conducting organization activity, execution fully obligations of accountability, strict observance of the legislation, protection of the available resources against inappropriate use, damage or loss.

Internal audit as one of elements of internal control promotes enhancement of organization activity by means of assessment of internal control system, identification of variations from accepted standards, the politician and procedures, violations of the principles of legality, efficiency in processes of management of public finances and developments of the adjusting measures and actions for prevention of the revealed violations further.

For the purpose of development in the Republic of Belarus of financial control and audit according to the international approaches in the medium-term period development of the Concept of upgrade of system of internal financial control and audit is provided in public sector and the actions plan on its realization.

Creation of internal control system and audit in public sector will promote prevention and prevention of offenses, improvement of quality of the public and corporate management, efficiency of use of budgetary and own funds of the organizations.

Enhancement of system of public procurements.

According to the changes made to the Law of the Republic of Belarus of July 13, 2012 No. 419-Z "About public procurements of goods (works, services)" and which became effective since July 1, 2019 for automation of purchasing process and control of actions of receivers of budgetary funds at all stages of holding procedures of public procurements, beginning from requirement planning in goods (works, services) and finishing with execution of agreements, the State information and analytical management system is created by public procurements. At the first stage (till July 1, 2019) the functionality of the State information and analytical management system allowed to provide with public procurements forming, processing, the analysis, control, storage and provision of information on public procurements. At the second stage (till April 1, 2020) interaction of the State information and analytical management system by public procurements with external information systems, including with the Automated system of financial calculations regarding reservation of budgetary appropriations prior to the procurement procedure shall be realized.

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