Parliament of the Republic of Moldova has adopted in the first reading amendments to the Law on the State Budget for 2021, increasing revenues and expenditures, but reducing the deficit.
In particular, the amendments approved by the MPs provide for an increase in the revenues of the state budget of Moldova for 2021 by 3 billion 679.2 million lei (+ 8.9%) - from 41 billion 415.4 million to 45 billion 094.6 million lei, an increase of expenditures by 1 billion 224.5 million lei (+ 2.2%) - from 56 billion 008 million 134.7 thousand to 57 billion 232.6 million lei, as well as a decrease in the state budget deficit by 2 billion 454.7 million lei ( -16.8%) - from 14 billion 592.7 million to 12 billion 138 million lei (5.23% of GDP). As Finance Minister Dumitru Budianschi noted, amendments to the Law on the State Budget for 2021 were proposed in connection with the need to adjust budgetary indicators of revenues, expenditures and deficits, taking into account the new forecast of macroeconomic indicators for this year, updated and presented by the Ministry of Economy in August, as well as taking into account the progress of the execution of the state budget for 8 months of 2021 In particular, the increase in budget revenues is associated with the resumption of economic activity after last year's crisis - positive shifts were noted in industry, construction, real estate transactions and communications. At the same time, exports also increased. Other important factors for the amendments to the state budget were: revision of the expenditure programs, taking into account the progress of the current implementation and the possibilities for the development of budgetary appropriations by the end of the year; the release of funding to support donor budgets; changes in the structure of sources of financing the budget deficit; the entry into force from October 1, 2021 of the new policies of assistance and social protection, reflected in the Government Action Program; providing funds to manage the pandemic by the end of the year. The increase in revenues to the state budget will be due to the acceleration of economic growth, an increase in exports, as well as an increase in the average monthly wage in the economy. Thus, it is expected an increase in the state budget’s own income, mainly due to taxes and fees. In particular, according to estimates and amendments made, the state budget revenues for 2021 from taxes and duties will grow by 3 billion 184.5 million lei - up to 41 billion 378.2 million lei, from grants - by 299.6 million lei - up to 1 billion 410.4 million lei, other income - by 186.9 million lei - up to 2 billion 286 million lei. At the same time, it is expected that this additional increase in revenues to the treasury will provide an increase in VAT revenues by 2 billion 120 million lei, income tax - by 390.2 million lei, excise taxes - by 145.8 million lei, grants - by 378.6 million lei, duties on foreign economic activity and foreign operations - by 197 million lei, state duties - by 40 million lei, etc. The largest increase in expenditures accounts for the Program in the road sector - 604.6 million lei, the National Fund for Agriculture and Rural Development - 435 million lei, rehabilitation of local roads - 204.1 million lei, replenishment of urgent government funds - 495.2 million lei, the health sector - 141.6 million lei. Staff costs will increase by 414.9 million lei, of which 170 million lei are intended to cover these costs in order to avoid possible risks of non-payment of wages in the current year and to increase the amount of contributions to the authorities' budgets. Also, additional funds will be allocated to create adequate conditions at the Stefan cel Mare Academy under the Ministry of Internal Affairs - 47.6 million lei, providing financial support to institutions involved in the fight against the Covid-19 pandemic - 14.1 million lei, for the reconstruction and modernization of buildings of the Center of Excellence in Construction - 5 million lei, modernization of the infrastructure of the Sculeni customs post - 2 million lei and other serious expenses. // 01.10.2021 – InfoMarket
