Revenues and expenditures of Moldova’s 2023 state budget are to be increased by 1 billion 406.2 million lei, with the deficit being kept at 18.3 billion.
This is provided for by the draft amendments to the Law on the State Budget for 2023 to be approved by the government at the next meeting on Wednesday, May 31. Under the bill, in particular, revenues of Moldova’s 2023 state budget are to increase by 1 billion 406.2 million lei (+2.2%) - from 64 billion 868 million 382.2 thousand lei to 66 billion 274 million 579 thousand lei, and expenditures – are also to increase by 1 billion 406.2 million lei (+1.7%) - from 83 billion 195 million 682.2 thousand to 84 billion 601 million 879 thousand lei. In this case, the state budget deficit will remain at the same level this year - 18 billion 327.3 million lei. Compared to the approved budget for 2023, revenues of the state budget this year are expected to grow by 1 billion 406.2 million lei, mainly due to an increase in foreign grants. In particular, revenues from grants will increase by 1 billion 479.3 million lei (+26.9%), including by 1 billion 451.1 million lei from grants for budget support and 28.2 million lei from grants for projects funded from external sources. At the same time, proceeds from other revenues will decrease by 75.3 million lei (-3.1%). Income from grants for budget support was reconsidered following the inclusion of the World Bank's grant "Multi-Donor Trust Fund for DPO Co-financing" (provided by the USA, Ireland and Sweden) in the amount of $86 million and the revision in the amount of $8 million of the DPO concessional contribution, due to an increase of the base interest rates on the international market and also based on the current dynamics of the national currency exchange rate. The inflow of grants for projects from external sources was revised as a result of the revision of the forecast for the implementation of projects funded from external sources in the current year, as well as the entry into force of new agreements. At the same time, the amendments to the state budget for 2023 stipulate an increase in the amount of the Road Fund by 4.5%, from 1 billion 485.3 million lei to 2 billion 221.3 million lei, of the National Fund for Regional and Local Development by 53.3%, from 600 million lei to 920 million lei and of the National Fund for Agricultural and Rural Development by 6.6 %, from 1.5 billion lei to 1.6 billion lei. At the same time, the volume of the Fund for the Voluntary Association of Settlements will be cut five times - from 250 million to 50 million lei, the Population Support Fund - by 39% - from 220.19 million to 134.12 million lei. Appropriations for capital investments to budgetary bodies will be decreased by 3.5% - from 2 billion 426 million 686.6 thousand lei to 2 billion 342 million 067.6 thousand lei. To implement the "First House" state program 200 million lei will be allocated (+17.6%) instead of the previously envisaged 170 million lei to repay state guarantees within the program. It was agreed that to calculate the salaries of public sector employees from June 1, 2023, in accordance with the provisions of the Law on Unified Payroll System in the Public Sector No. 270/2018, a base rate of 1,900 lei will be set. Previously, this provision was planned to be applied from September 1, 2023. At the same time, it is proposed to increase the basic salaries for the staff from the office of the First Deputy Prime Minister, Deputy President of Parliament, Deputy Prime Minister, Chairman of the Parliamentary faction, Minister, People's Advocate, Chairman of the Council for Equality, General Mayor of Chisinau municipality, as well as staff from the office of the director general of the central administrative authorities as chief of staff, advisor, aide, and secretary. As noted by the government, more than 30% of these vacancies are unfilled or there is a high turnover of staff due to very low wages. At the same time, the people in the offices of these high-ranking officials perform complicated analytical tasks, especially in the context of Moldova's obtaining EU candidate status on June 23, 2022. // 29.05.2023 – InfoMarket
