Moldovan Parliament passed in the second reading the draft law on the state budget for 2024 with a state budget deficit of 15.79 billion lei (4.6% of GDP).
In particular, the state budget revenues are expected to amount to 66 billion 632 million lei in 2024, up by 1.3% against the adjusted figures for 2023, while the expenditures are expected to amount to 82 billion 222 million lei (-2.2%). Moldova's state budget deficit in 2024 is estimated at 15 billion 790 million lei (4.6% of GDP). When elaborating the budget for 2024, the economic development prospects for the next 3 years and the macroeconomic forecast, updated in October, as well as the risks related to the external conjuncture were taken into account. The main economic law for the next year was based on new forecasts of macroeconomic indicators, agreed with IMF experts, according to which GDP is expected to grow by 3.5% in 2024, and average annual inflation to be - 5.7%. According to the government, the state budget for 2024 is 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 allowances at 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 birth allowance will be increased to 20,000 lei, while teachers' salaries will rise by 15%. Also, the allocations for the program "Protection of Family and Children" will be increased and money will be allocated for the development of villages and towns. In addition, the allowances for war veterans, participants in combat actions for the defense of Moldova's territorial integrity and independence, and participants in the war in Afghanistan will be increased by 250 lei. 82 million lei will be allocated for this purpose. According to the draft law, the policy of supporting small and medium-sized enterprises (SMEs) remains a priority. In particular, over 197 million lei will be allocated to finance a string of programs in this field. These funds will be used for the sustainable development of SMEs, their expansion across the country, especially in rural areas, creation of new jobs, more active involvement of young people and women. Another important priority is the development of the transportation 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 means from external sources, while 2 billion 505.6 million lei will be used for the repair and maintenance of roads of national and local importance. For the subsidization of the agrarian sector, rural development and integration of the national agri-industrial sector into the European economy, the state budget for 2024 envisages allocations of 1.6 billion lei. Also, 322.1 million lei will be allocated for energy efficiency, 601.5 million lei will be directed to the National Fund for Regional and Local Development, while 175 million lei will be used to promote environmental protection policies. Also, 11 million lei will be earmarked in next year's budget to create a fund to support the distribution of print media: the money will be used to fully compensate the increase in the tariff for the distribution of newspapers. The procedure of state support distribution will be based on ethical and deontological criteria, and its observance will be monitored by media experts. About 4.4% of state budget expenditures in 2024 will be covered by external resources. The 2024 budget is expected to receive over 2.39 billion lei in grants, including over 1.9 billion lei for budget support and about 0.48 billion lei (equivalent to $25.8 million) for projects financed from external sources. At the same time, the government plans to receive 14 billion 796.2 million lei ($781.6 million) in external credits to support the budget and implement projects financed from external sources. At the same time, it is planned to receive 9 billion 158.3 million lei ($483.8 million) in external state credits to support the budget, and 5 billion 637.9 million lei ($297.8 million) for the implementation of projects financed from external sources. The balance of Moldova's state debt at the end of 2024 is forecasted to reach 125 billion 525.6 million lei, which is by 10 billion 971.4 million lei (9.6%) more than the figures expected at the end of 2023. It is expected that in the structure of the state debt as of December 31, 2024, the share of external state debt will amount to 64.5%, and the share of domestic state debt - 35.5%. In general, the debt-to-GDP ratio will not exceed 37%. // 22.12.2023 - InfoMarket.
