The Parliament of Moldova adopted in the first reading the draft Law on the State Budget for 2024, providing for a state budget deficit of 15.79 billion lei, or 4.6% of GDP.
As Minister of Finance Petru Rotaru noted, presenting the draft of the main financial law of the country for the next year, in particular, state budget revenues in 2024 are expected to amount to 66 billion 632 million lei and increase by 1.3%, compared with the updated figures for 2023, and expenses will amount to 82 billion 222 million lei (-2.2%). The state budget deficit of Moldova in 2024 is estimated at 15 billion 790 million lei (4.6% of GDP). When developing the budget for 2024, the prospects for economic development for the next 3 years and the macroeconomic forecast updated in October were taken into account, as well as risks associated with the external environment. The main economic law for the next year was based on new forecasts of macroeconomic indicators, agreed with IMF experts, according to which in 2024 GDP growth is expected by 3.5% - to 312.4 billion lei, average annual inflation - 5.7%, export growth - by 9.8%, import - by 8.7%. In the structure of state budget revenues for 2024, the largest share will traditionally be taxes and duties - over 61.1 billion lei, or 91.7% (an increase of 5.02 billion lei, or 9%). In particular, taxation of legal entities will provide the budget with revenues of 9.3 million lei (+15.4%), individuals - 2.76 billion lei (+10.1%). The most important tax source of budget revenue will be VAT – 34.17 million lei (+8%). This will happen due to growth in domestic consumption, import volumes, exchange rates, and improved tax and customs administration. In the form of grants, the 2024 budget is expected to receive over 2.39 billion lei, including more than 1.9 billion lei for budget support, and about 0.48 billion lei (equivalent to $25.8 million) - for projects financed from external sources. Herewith, to support the budget and implement projects financed from external sources, it is planned to receive external loans in the amount of 14 billion 796.2 million lei ($781.6 million). Meanwhile, it is planned to receive 9 billion 158.3 million lei ($483.8 million) in external government loans to support the budget, and 5 billion 637.9 million lei ($297.8 million) for the implementation of projects financed from external sources. Petru Rotaru emphasized that the state budget for 2024 will be focused on supporting the social sphere, education and infrastructure development. It provides for an increase in allocations for children, including an increase in the amount of benefits for the birth of a child, a 15% increase in teachers' salaries and a doubling of scholarships for students of pedagogical faculties. In particular, from January 1, 2024, the amount of the child birth benefit will be increased to 20 thousand lei, and teachers’ salaries in the country will increase by 15%. Allocations for the “Protection of Family and Children” program will also be increased and money will be allocated for the development of villages and cities. According to the bill, the policy of supporting small and medium-sized enterprises (SMEs) remains a priority; in particular, more than 197 million lei will be allocated to finance a number of programs in this area; these funds will be used for the sustainable development of SMEs, their expansion throughout the country, especially in rural areas, the creation of new jobs, and the more active involvement of youth and women. Another important priority is the development of the transport system and infrastructure. For this purpose, 4 billion 036.5 million lei are planned in the budget, of which 1 billion 393.9 million lei are financial resources from external sources, and 2 billion 505.6 million lei will be allocated for the repair and maintenance of roads of republican and local importance. To subsidize the agricultural sector, rural development and integration of the national agro-industrial sector into the European economy, the state budget for 2024 provides for allocations of 1.6 billion lei. Also, 322.1 million lei will be allocated for energy efficiency, 601.5 million lei will go to the National Fund for Regional and Local Development, and 175 million lei will be used to promote environmental protection policies. About 4.4% of state budget expenditures in 2024 will be covered by external resources. In total, in 2024 it is planned to implement 80 projects with external financing: support in the road sector - 871.7 million lei, projects "Roads" III-V - 450 million lei, additional funding for the project "Urgent response to COVID-19" - 292.7 million lei, to support higher education - 236.8 million lei, energy sector program - 223.2 million lei, etc. The Road Fund will amount to 1 billion 655.9 million lei, the Energy Vulnerability Reduction Fund - 1.5 billion lei, the National Fund for Regional and Local Development - 601.5 million lei, the National Fund for Agriculture and Rural Development - 1.6 billion lei, Viticulture and Wine Fund - 38.1 million lei, National Environmental Fund - 175 million lei, Fund for the Voluntary Association of Settlements - 150 million lei. 53.9 million lei are provided for financing political parties; to finance capital investments by budgetary authorities - 2 billion lei; for repair/construction of sanitary blocks in primary, secondary and higher educational institutions – 26.1 million lei; to pay contributions to international organizations in which Moldova is a member - 56.5 million lei; for the “First Home” program - 170 million lei. The government's reserve fund will amount to 150 million lei, and the Intervention Fund - 250 million lei. About 1.65 billion lei will be allocated to increase salaries for public sector employees, etc. It is expected that revenues of the national public budget in 2024 will increase by 4.4% compared to 2023, and will amount to 107 billion 172 million lei. Revenue growth will be supported by economic recovery, some government support measures, fiscal and customs policies, and improved revenue management. Expenditures of the national public budget in 2024 will amount to 122 billion 962 million lei and will exceed by more than 1.5% the figure expected in 2023.// 07.12.2023 — InfoMarket
