Belarus spends on government subsidies of about 14% of GDP. This is stated in the report on selected issues of the Belarusian economy, prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation, BelaPAN.
Belarus government allocates funds for grants to extremely high volume, while having scope for reductions while protecting the poor and low-income families.
By specifying its findings, the IMF notes that the subsidies are granted in the form of direct transfertav (families with children, special groups and in the form of grants) or indirect transfertav when the price of certain goods and services maintained at a low level through the budget. Examples of the latter include utilities and public transport, loans for the purchase and construction of housing, reduced rates of VAT on food and facilities for utilities and housing. Indirect subsidies also include support for specific sectors of the economy, particularly the construction and agriculture.
In this case, the IMF experts emphasize that adrasnasts some of these programs are insufficient, and therefore "they are usually expensive budget as providing support for the entire range of the income distribution."