The government, as part of the adjustment of the state budget for 2022, increased public spending in order to maintain economic stability, jobs and prevent vulnerabilities - Natalia Gavrilita.
The Prime Minister stated this at a press conference on Monday, commenting on the amendments proposed by the Cabinet of Ministers to the law on the state budget for this year. Natalia Gavrilita emphasized that the national economy has been hit hard by the war in Ukraine, prices have risen sharply, and economic agents are facing undue pressure and difficulties in trying to maintain markets, suppliers, production and jobs. “We are living in extraordinary times that require extraordinary measures,” she said. The Prime Minister noted a number of areas in which a significant increase in public spending will be made. According to her, in particular, spending in the field of social protection will grow by 2.45 billion lei to increase pensions and social payments from April 1. Natalia Gavrilita recalled that this year the fund for the payment of pensions has grown by 30%. Other social spending was also increased. Thus, 111.8 million lei more was allocated for the nutrition of children in educational institutions. Financing of personal assistance services for persons with disabilities increased by 65 million lei. It also provides for an increase in deductions to pay for the increased cost of heat energy for budgetary institutions: an additional 1 billion lei has been allocated for hospitals, schools, kindergartens. Of this amount, 521 million lei will be directed to the local level to pay for the heat carrier. In addition, the amount of compensation for the difference in tariffs for heat and electricity was increased. Another 700 million lei will go to support programs for entrepreneurs and agriculture. In particular, the National Fund for the Development of Agriculture and Rural Areas was increased by 250 million lei to finance entrepreneurs in agriculture and partially compensate excise taxes on diesel fuel. Another 200 million lei is allocated to finance programs to support small and medium-sized enterprises, including support for internationalization programs and access to new markets, retechnologicalization, digital transformation and other programs for small and medium-sized enterprises. Natalia Gavrilita also reminded about the Loan Guarantee Fund, which was capitalized and available to entrepreneurs under simplified rules recently approved by the government. The prime minister also drew attention to the fact that the energy crisis showed the importance of actions to improve energy efficiency and energy security, and in this regard, the Cabinet increased energy efficiency spending by 200 million lei. The head of government noted that another 50 million lei in the budget will be provided to support carriers. In addition, spending on capital investment, including road repairs, has been increased to ensure future economic growth. Capital expenditures will increase by 1.1 billion lei (+16.8%). Natalia Gavrilita called it natural that in a crisis situation the government increased spending to help citizens pay higher energy bills, promote business development and farmers who suffered from the consequences of the war. According to her, the envisaged increase in revenues to the treasury is due equally to an increase in tax and duty receipts and grants. The draft amendments to the Law on the State Budget for 2022 must be approved by the Parliament.// 18.04.2022- InfoMarket.
