R E P U B L I C OF B E L A R U S General financial statistic

1. REPUBLIC OF BELARUSGeneral financial statistic November 2013 Budget Policy Department

2. Belarus at a Glance Area: 207,600km2 LATVIA RUSSIA Population: 9.46million(as of December 31, 2012) LITHUANIA BELARUS ≈$63billion GDPin 2009: POLAND Belarusianruble (BYR), 1 USD = 9090 BYR* Currency: UKRAINE CZECHREP. SLOVAKIA Key Historical Events Creation of the Customs Union of Belarus, Russia and Kazakhstan Creation of a common economic area of Belarus, Russia and Kazakhstan Signing the Treaty on Establishing the Union State of Belarus and Russia Agreeing on a $3.5 bn IMF SBA programme Independence 2011 2015 1991 1997 2000 2007 2009 2010 Hockey championship to be held in Minsk Joining the EU Eastern Partnership initiative Membership in the CIS, IMF and World Bank Acquiring credit ratings issued by S&P and Moody’s Creation of the EurAsEC (Belarus, Russia, Kazakhstan, Kirgizia, Tajikistan) * As of October 1, 2013

3. Socially-oriented market economy. Developed export-oriented industryis the basis of the economy • Highly qualified workforce. Belarus ranks the 50th in the UN human development index • High rates of economic growth prior to 2010 • The stability of monetary and banking system has been maintained throughout the crisis. • A $3.5bn SBA program has been successfully implemented with the IMF • Sustainable public finances – Belarus has a traditionally balanced budget and low debt burden indicators • The Government has introduced a package oftax incentives in response to the crisis Belarus: the main directions of development

4. Relationship with EU: Broadening Dialogue • Dialogue extended along the entire spectrum of bilateral cooperation • Joining the EU Eastern Partnership initiative (2009) • About 27 percent of Russian oil and 25 percent of Russian gas exports to the EU pass through Belarus • Belarus is a member of the United Nations ("UN"), the CIS, the OSCE, the North Atlantic Treaty Organization's program ("NATO") "Partnership for Peace", the IMF, the World Bank, the EBRD, as well as a number of other international organizations • EU - one of the main markets for Belarusian exports and the main providers of technical and humanitarian assistance. Budget aid programs financed by the EU funds has increased from 5 million euros per year in 2007-2008 to 17 million euros earmarked for 2012 • Republic of Belarus has trade agreements with some EU countries such as Britain, Germany, Italy, France, Belgium, the Netherlands

5. Belarus is a member of IMF • Belarus is a member of IMFsince1992 • The Ministry of Finance is an official representative of the country • As a member of the IMF, the Republic of Belarus has the commitment to inform the world community about the economic activities of the state, in particular, to provide data on government finance statistics.

6. Structure of general government in the Republic of Belarus General government in the Republic of Belarus: • Central government Subsector 1. Central government units covered by the budget, including extra-budgetary funds (ministries, committees and other budgetary organizations financed from republican budget); Subsector 2. Extrabudgetary units/entities (concerns) Subsector 3. Social Protection Fund of the Population • Local governments(oblast/provincial (6), City of Minsk (1), oblast cities (12), rayon/districts (118), rayon cities (14), settlement /townships budgets (55) , rural (1275) and other budgetary organizations financed from local budgets)

7. Structure of the public sector government in the Republic of Belarus The public sector : • The non-financial public sector - General government ( previous slide) - Public nonfinancial corporations ( Republican (about 600) and utilities ( about 2100 ) unitary enterprises , public nonfinancial corporations, in which the state owns more than 50 percent of the voting shares ( 1500 ) ) • public financial corporation - The National Bank of the Republic of Belarus - Government deposit-taking institutions , except the Central Bank (4 ) - Other state financial corporations (State insurance companies and insurance companies with a share of state ownership in the share capital of more than 50 percent, as well as other public financial corporation in which the state owns more than 50 percent of the voting shares) .

8. Statement ofOther Economic Flows Closing Balance Sheet Change in net worth Net worth = = Transactions in nonfinancial assets Nonfinancial assets + + Transactions in financial assets Financial assets - - Transactions in liabilities Liabilities Analytical Framework GFSM 2001 Statement of operations Revenue • Stock positions • Stock positions - Expense Opening Balance Sheet = Change in networth Net worth = = Transactions in nonfinancial assets Nonfinancial assets + + Financial assets Transactions in financial assets - - Transactions in liabilities Liabilities • Flows • Flows

9. Отчет об операциях согласно СГФ Revenue -Expense = Net/gross operating balance - TRANSACTIONS IN NONFINANCIAL ASSETS = Net lending (+) / Net borrowing (–) - TRANSACTIONS IN FINANCIAL ASSETS + TRANSACTIONS IN LIABILITIES = zero (in a view ofdouble-entry accounting)

10. STATEMENT OF GOVERNMENT OPERATIONS COMPARED TO FISCAL CLASSIFICATION OF BELARUS Revenue Revenue Nonfinancial assets Social Protection Fund Expense Expense Financial assets • cash assets • other fin.assets Liabilities General government STATEMENT OF GOVERNMENT OPERATIONS minus Revenues from Salesstateproperty minus = Net/gross operating balance minus Capital expenditure = balance Overal funding deficit Provision of loan and budget = Net lending (+) / Net borrowing (–) minus Extrabudgetary funds

11. The relationship GFS (methodology RSGF2001) with reports on budget execution GFS data Data reporting Excluding revenues from implementation of state property RevenueС1 minus Revenue Revenues from sales state property ExpenseC2 = net inflowCash flows fromoperating activities Current expenditures pluscapital transfers minus Capital investments in fixed funds (except overhaul) creation of the state of stocks and reserves, land acquisition and intangible assets The acquisition of non-financial assets С31.1 Expense minus Disposals of non-financial assets С31.2 Providing loans, budgetary loans, budget loans minus repayments = investment in NFA plus AdoptionliabilitiesС33 Power derived from National Bank of the Republic of Belarus, sources derived  from banks and other legal and individuals minus Acquisitionfinancial assets С32 Sources of external  funding Overal funding deficit = cash flow from financing activities Sources from operationsbelonging state property equal Other borrowingsinternal financing Net changein inventoriescash С3212 Operations on due foreign, changing balances the budget

12. Issues requiring further consideration • Forest Resources Assessment ( conducted on the basis of expert assessment of their value in a conventionally accepted value of a unit ) • Evaluation of mineral resources ( is mandatory only for deposits of strategic minerals) Valuation of Mineral Resources ( no methodological basis for calculation)  • The valuation of the company's financial assets and liabilities (applicable assessment at face value)  • Cadastral valuation of land (in case of for various purposes consolidated result as the cost of land in the Republic of Belarus is not defined )

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