Moldovan authorities have increased the amount of money intended for financing the budget from the placement of government securities as of the end of 2021 from 6.75 billion to 7.36 billion lei.
This is provided for by the corresponding amendments to the 2021 state budget, passed by the Moldovan parliament on Friday in two readings at once. As the authors of the bill noted, the amendments are of a technical nature and are necessary for the application of the new procedure for indexing pensions from April 1. In particular, the approved changes are aimed at adjusting the sources of financing the budget deficit in accordance with the changed deficit, reflecting additional allocations from the state budget for expenditure subprograms and, in accordance with the Functional Classification, adjusting the domestic public debt limit. The changes, among other things, stipulate an increase in the amount intended for financing the budget from the placement of government securities as of the end of 2021 by 608.5 million lei - from 6 billion 750 million to 7 billion 358.5 million lei. As previously reported, the parliament adopted on March 12 the Law on Amendments to Certain Regulations Establishing a New Pension Indexation Mechanism. According to the amendments, in April the indexation coefficient of pensions will be the average annual increase in the consumer price index over the past three years, and in October - the inflation rate recorded in the first half of this year. The indexation mechanism will be applied to 731,364 recipients, including 662,475 recipients of pensions and 68,889 recipients of state social benefits. The expenses required for the indexation of pensions and social benefits as of April 1 and October 1 amount to 702 million 612 thousand lei, of which 94 million 077.3 thousand lei are provided for by the Law on the State Social Insurance Budget for 2021, and additional funds totaling 608 million 534.7 thousand lei will be transfers from the state budget to the state social insurance budget. Their sources of coverage will be supplemented by a budget deficit covered by domestic debt. // 26.03.2021 - InfoMarket.
