Technical Note on the Methodology for the Allocation of Intergovernmental Grants in the Republic of Belarus

This technical note evaluates the methodology proposed by the Ministry of Finance for the allocation of transfers to subnational governments and suggest a number of alternative options for various grant design elements Overall, the framework laid out in the Budget Code and the implementation approach developed in the draft methodology conform to sound principles in fiscal decentralization and the best international practices. However, a number of elements of the methodology still need to be elaborated and some elements might need to be revised