Belarus faces significant fiscal challenges, stemming from the structural features of its economic model. As of mid-2011, under a severe exchange rate and balance of payments crisis, the Government needs to pursue a carefully sequenced strategy of macroeconomic adjustment coupled with a strong program of structural reforms. This programmatic Public Expenditure Review (PER) fiscal policy options to simultaneously tackle the need for fiscal consolidation as well as the structural challenges with significant fiscal linkages. The options for fiscal reform proposed in this report are estimated to generate average net fiscal savings of 3.9 percent of Gross Domestic product (GDP) annually over the medium term. Given the implied structural changes in the expenditure program, the fiscal impact of these reforms extends beyond the four year projection period.