The Government of Moldova approved the draft Law on the state budget for 2023 with a deficit of 18 billion 327.3 million lei.
In particular, it is expected that next year the revenue part of the state budget will amount to 64 billion 868 million 382.2 thousand lei (+5.5 billion lei, or an increase of 9.3%, compared with the revised figures for 2022), expenditure part - 83 billion 195 million 682.2 thousand lei (+9.3 billion lei, or an increase of 12.5%), and the deficit - 18 billion 327.3 million lei (+3.7 billion lei, or an increase of 25.6%). As Minister of Finance Dumitru Budianschi noted, the budget for 2023 was drawn up taking into account the difficult situation of the numerous crises that our country is experiencing. The main economic law for the next year was based on new forecasts of macroeconomic indicators, agreed with IMF experts, according to which in 2023 GDP is expected to grow by 2% - up to 308.8 billion lei, average annual inflation - 15.7%, export growth by 1.4%, imports - by 3.2%, an increase in the average salary by 13.8% - up to 11,700 lei. The head of the Ministry of Finance specified that the state budget deficit in 2023 in the amount of more than 18.3 billion lei is planned to be covered mainly through external loans, which are planned to be received on concession terms, at a low interest rate (from 1.5% to 2.5% per annum). According to him, it is planned that such concession loans will be received for 15 billion lei, and this money will be the cheapest on the market. Also, 3 billion lei will be occupied in the domestic market, if there are appropriate conditions for this. In the structure of state budget revenues for 2023, the largest share will traditionally fall on taxes and duties - over 56.9 billion lei, or 87.8% (+4.97 billion lei, or 9.6%). Herewith, it is planned to receive over 34.1 billion lei from VAT (+4.48 billion lei, or 15.1%). In the form of grants, the 2023 budget is expected to receive over 5.5 billion lei (8.5% of the total revenue). Meanwhile, more than 4.3 billion lei of grants are provided for budget support, and about 1.2 billion lei - for projects financed from external sources. The largest part of the spending will go to social spending, raising wages and pensions, paying compensation to reduce energy vulnerability, and introducing other important programs. It was agreed that the Road Fund will amount to 1 billion 485 million 348.4 thousand lei, the Energy Vulnerability Reduction Fund - 5 billion lei, the National Fund for Regional and Local Development - 600 million lei, the National Fund for the Development of Agriculture and Rural Areas - 1.5 billion lei, the Viticulture and Wine Fund - 40.69 million lei, the National Environmental Fund - 175 million lei, the Fund for the Voluntary Association of Settlements - 250 million lei, the Population Support Fund - 220.19 million lei.49.98 million lei are provided for the financing of political parties; for financing capital investments by budgetary bodies - 2 billion 426 million 686.6 thousand lei; for the repair/construction of sanitary blocks in primary, secondary and higher educational institutions - 25 million lei; 66 million 547.5 thousand lei for the payment of fees in international organizations in which Moldova is a member, and 15 million lei for the country's reintegration activities. The government's term funds will amount to 1.1 billion lei, while the government's reserve fund will amount to 500 million lei, and the Intervention Fund - 600 million lei. To support the program of grants for youth initiatives at the local level, are provided 1.5 million lei, for the Diaspora Acasă Reușește DAR 1+3 program - 10 million lei; to subsidize jobs - 15 million lei; for the implementation of the state program "First Home (Prima Casa)" - 170 million lei. It is expected that 363 million 158.3 thousand lei (the equivalent of 16 million 962.1 thousand euros) will be allocated to increase the authorized capital of the state enterprise "Railway of Moldova" from a loan provided by the European Investment Bank under the Project for the acquisition of locomotives and restructuring of the railway infrastructure. 67 million 536.9 thousand lei (the equivalent of 3 million 154.45 thousand euros) are provided for the increase in the authorized capital of Arena Națională LLC; to increase the share of Moldova in the authorized capital in the International Bank for Reconstruction and Development - 43 million 643.5 thousand lei (equivalent to 2 million 181.1 thousand) and in the International Finance Corporation - 19 million 589.8 thousand lei (equivalent to $ 979 thousand); to increase the share in the authorized capital of the Black Sea Trade and Development Bank - 3 million 297.1 thousand lei (the equivalent of 154 thousand euros). It is planned that the total public debt of Moldova as of December 31, 2023 will not exceed 122.5 billion lei (+ 21.4 billion lei compared to the forecast for the end of 2022) and will amount to 39.7% of GDP, which is 3.4 percentage points higher than expected at the end of 2022. It is predicted that by the end of 2023 the internal public debt will not exceed the amount of 37 billion 483.9 million lei, and the external public debt of 85 billion 021.4 million lei (equivalent to 4 billion 141.3 million). Prime Minister Natalia Gavrilita called it important that, despite the difficult conditions, the government found the means to raise wages, pay compensation, and protect investments. According to her, concessionary, soft loans will be taken to cover the deficit, and as a result, the country's debts will remain small in relation to GDP, in comparison with other countries. “We will be able to help citizens get out of the crisis as soon as possible,” she said. // 07.12.2022 — InfoMarket
