After three decades of power centralization in Belarus, Alaksandar Łukašenka has signed an edict significantly expanding the powers of district executive committees. This move gives local officials greater freedom in managing budgets and state property, as well as authorizing them to approve the appointments of CEOs to private companies. This shift is unusual, considering his history of tightening control over local governments.
Belarus’ top-down government struggles with cash shortages
For decades, Belarus’s political system has followed a rigid vertical structure. Local executive committees had little independence, simply carrying out instructions from regional and central authorities. This arrangement ensured central government control but resulted in a system that was inflexible and inefficient in times of crisis.
Additionally, local budgets have long faced financial constraints, relying heavily on subsidies. In 2025, local budgets totaled 46.3 billion rubels ($14.2 billion), with 10.4 billion rubels (22 percent) coming from the national treasury. While Minsk and the Minsk region are relatively self-sufficient, other regions rely on subsidies that make up over 30 percent of their total budgets.
Local budgets cover essential services such as schools, kindergartens, hospitals and clinics. However, despite the central government’s control over most of the funding, local authorities have limited financial resources and little autonomy in decision-making related to spending.
Executive committees to control private sector
The new edict expands the powers of district governments, giving them more control over budget distribution, use of the reserve fund, state purchases without competition and land management.
One of the most talked-about changes is the right of local authorities to approve the appointment of CEOs, not only for state-owned enterprises but also for private companies (except those with a single owner). They will also have the authority to confirm the appointments of top executives. This gives district heads the ability to structure their own local top-down system.
The executive committees can now appoint and dismiss the heads of local government agencies, except for security chiefs, who are appointed by higher authorities. As a safeguard, the edict stipulates that local prosecutors will attend executive committee meetings, but without voting rights.
Local authorities can force public to contribute to local initiatives
This shift in power coincides with the government’s declaration of the Year of Improvement. In light of economic difficulties, the government is expecting the public to share the burden of financing large-scale projects.
The edict grants district authorities the ability to involve businesses and local residents in funding area improvements at their own expense. Refusal to comply with district committees’ orders is punishable by disciplinary action.
During a recent meeting with business leaders, Łukašenka emphasized that businesses must lend their support during these challenging times.
Łukašenka shifts responsibility, seeks scapegoats
Why is Łukašenka restructuring the system after years of extreme centralization?
The likely reason is that the national budget can no longer fully cover local government expenses. Until recently, all decisions were made in Minsk, but now the central government lacks the funds to effectively manage districts. As a result, the only solution is to shift some responsibility downward.
However, this move appears more like a search for scapegoats than true decentralization. If the economy falters, local executive committees will be blamed, not the central government.
Challenges
Even after the central government delegated some powers, will district executive committees take full advantage of their newfound autonomy?
For 30 years, district chiefs have been accustomed to a centralized management style and a strict hierarchy. Appointments were based more on loyalty than merit. Now that they have been granted some power, will they use it effectively?
Two key issues arise:
- Corruption Risks: The new powers create opportunities for abuse, particularly in areas like budget allocation, business control and land management.
- Lack of Real Growth Strategies: Even if executive committees use their new powers, they still lack the necessary resources to address fundamental local issues, such as youth emigration, low wages and the unfavorable business climate.
It is likely that most district chiefs will remain cautious when exercising their new powers. The risks are high, and the tradition of independence is weak. Even if they act proactively, their efforts will probably not lead to substantial change.
Instead, pressure on businesses will increase, corruption will flourish and local problems will be passed on to the public.
Belarus faces distrust amid shifting military rhetoric
Belarus' neighbors view its regime with growing distrust, perceiving it as increasingly controlled by an aggressive Russia. Officials blame West On February 20, Major General Valer Ravienka, head of the Department of International Military Cooperation at the Ministry of Defense, …