OREANDA-NEWS. July 26, 2011. The reduction in the state budget deficit to 1.5% from 3% of GDP in 2011 (under Belarus’ commitments to the EurAsEC Bailout Fund) is not sufficient, IMF Resident Representative in Belarus Natalia Koliadina told reporters.

A balanced budget would be the best option for Belarus, she believes.

“Belarus requires an integrated package of measures to tighten monetary and fiscal policies, as well as the incomes policy, which would enable the country to slacken the domestic demand and change to a unified flexible exchange rate with least problems,” Koliadina said.

According to her, the targeted reduction in the deficit to 1.5% of GDP in 2011, which is in line with Belarus’ commitments to the EurAsEC Bailout Fund, is not enough to slacken the domestic demand.

“A deficit-free budget would be the best option,” she said.