The Parliament of Moldova approved in the first reading amendments to the Law on the State Budget for 2021, providing for an increase in income and expenditure, and a reduction in the deficit.
In particular, the bill approved by the deputies stipulates an increase in the revenue side of the budget by 767.8 million lei (+ 1.7%) - from 45 billion 094.6 million to 45 billion 862.4 million lei, an increase in the expenditure side by 421.7 million lei (+ 0.7%) - from 57 billion 232.6 million to 57 billion 654.3 million lei, as well as reducing the state budget deficit by 346.1 million lei (-2.9%) - from 12 billion 138 million to 11 billion 791.9 million lei. This figure will amount to approximately 5.1% of GDP. As noted by the head of the Ministry of Finance Dumitru Budianschi, the change in the budget is due to the state of emergency in the energy sector and the need to take legislative measures to overcome it. The revenue side of the state budget is mainly increased due to the growth of revenues from taxes and fees, and the increase in expenditures is associated with the provision of additional benefits to the population to overcome the consequences of the state of emergency. In particular, 210 million lei are intended to compensate for the difference in tariffs on bills for natural gas and heat. Another 139 million lei will be transferred to the state social insurance budget, of which 104 million lei - as a result of an increase in aid for the cold season, as well as an increase in the number of low-income families who will benefit from such state support. As noted by Dumitru Budianschi, the state budget for 2022 will also provide funds to partially compensate household consumers for the difference between the old and new tariffs for gas and heat, as well as to provide assistance for the cold season, the amount of which will increase from 500 to 700 lei. As follows from the data of the Ministry of Finance, within the framework of the current amendments to the Law on the State Budget for 2021, it is planned to increase the revenue side of the budget by 767.8 million lei through an increase in revenues from taxes and duties by 700 million lei (up to 42 billion 078.2 million lei ) and other incomes - by 67.8 million lei (up to 2 billion 353.9 million lei). At the same time, this growth will be mainly due to: an increase in revenues from VAT on goods and services provided in Moldova - by 125 million lei, an increase in VAT on imported goods - by 475 million lei, a decrease in VAT refunds by 100 million lei, an increase in revenues funds from the profits of the National Bank for 2020 in the amount of 56.4 million lei, etc. As a result, the revenue part of the budget for this year will increase by 767.8 million lei (+ 1.7%) - from 45 billion 094.6 million to 45 billion 862.4 million lei. Herewith, the expenditure part of the budget will increase by 421.7 million lei (+ 0.7%) - from 57 billion 232.6 million to 57 billion 654.3 million lei. The increase in costs will be due to the need to pay compensations to cover the difference in tariffs for the supply of gas and heat energy, an increase in the amounts of compensations paid to socially vulnerable categories of citizens during the cold period, to pay benefits for technical unemployment, etc. The government's reserve fund will be increased by 50 million lei. An increase in the revenues and expenditures of the budget will lead to a decrease in the state budget deficit for 2021 by 346.1 million lei (-2.9%) - to 11 billion 791.9 million lei, which will be about 5.1% of the forecast for this year GDP. A change in the sources of financing the state budget deficit was also discussed. It is envisaged to send up to 1.7 billion lei to increase the authorized capital of Energocom to ensure measures to purchase gas to cover its deficit and current consumption, receive the first tranche in the amount of 1 billion 395.9 million lei (equivalent to $ 78.3 million) in within the framework of the new program of economic reforms, supported by the IMF resources, an increase in funds in the bank accounts of the state budget by 42 million lei. It is expected that the balance of Moldova's public debt at the end of 2021 will not exceed 85 billion 438.4 million lei and will increase by 1 billion 424.1 million lei, in comparison with the previously approved indicator. The growth in the balance of the national debt of Moldova will be due to the increase in the balance of the external public debt. In particular, it is planned that the balance of the external public debt, expressed in lei, as of December 31, 2021, will amount to 51 billion 049.5 million lei and will increase by 2.9%, in comparison with the previously approved revised indicators, which will be mainly due to an increase in funding in the form of external government loans to support the budget. It is expected that as of December 31, 2021, the balance of the domestic public debt will amount to 34 billion 388.9 million lei. It is assumed that the share of the national debt balance in GDP will increase, compared with the initially approved indicator, by 0.6 percentage points, and will be as of December 31 of this year 36.7%. // 18.11.2021 — InfoMarket
