The project, based on a Public Expenditure and Financial Accountability (PEFA) assessment carried out by the bank, aims to improve policy alignment of the budget, consolidate cash balances, improve budget transparency and the lay the groundwork for an Integrated Financial Management Information System.

The PEFA assessment, which was conducted in 2014, found that the existing PFM regime had failed to deliver fiscal discipline and had a variety of weaknesses, such as the lack of a multi-year perspective in budgeting and a focus on compliance rather than performance.

Young Chul Kim, World Bank country manager for Belarus, said: “Budget planning and execution is a key foundation for public sector reforms to improve service delivery and efficient use of public resources.

“The Belarusian government recognises that changes are needed in the way it manages public finances and we are ready to assist the authorities in this endeavour.”

Oleksii Balabushko, senior public finance specialist and World Bank project team leader, added the project would redesign core business processes and invest in capacity development.

“As a result of implementation of the project, the private sector and households will benefit from improvements in transparency and more efficient management of public resources, which will ultimately lead to improvements in the level and the quality of public services.”

Following approval of this project, the World Bank is now financing nine projects in Belarus with a value totalling $998m.