Moldovan parliament has passed in the second reading amendments to the Law on the state budget for 2024, increasing its deficit by 7.6% - up to 16 billion 777.8 million lei
According to the draft law, in particular, the revenue part of the state budget for 2024 was reduced by 801.46 million lei (-1.2%) - from 66 billion 632 million lei to 65 billion 830.54 million lei, the expenditure part was increased by 386.34 million lei (+0.5%) - from 82 billion 222 million lei to 82 billion 608.34 million lei, while the state budget deficit was increased by 1 billion 187.8 million lei (+7.6%) - from 15 billion 590 million lei to 16 billion 777.8 million lei. According to the Finance Ministry, the amendments to the state budget for 2024 are conditioned by the adjustment of the budgetary indicators on revenues, expenditures and budget deficit, taking into account the new forecast of macroeconomic indicators for 2024, presented by the Ministry of Economic Development and Digitalization, as well as the progress in the execution of the state budget for 5 months of the current year. Against the background of slower economic recovery than expected at the stage of preparation of the budget for 2024, in the first half of the current year, the collection of revenues from direct and indirect taxes decreased, including against the background of fiscal policy measures applied from 2023. In order to maintain the level of state budget expenditures, as well as to ensure some additional expenditures, amendments to the state budget envisage an increase in the budget deficit, as well as redistribution of some funds to higher priority expenditures. Increased appropriations are envisaged for health care, social insurance, education, infrastructure and agriculture. In particular, it is envisaged to increase allocations to the Road Fund for the repair and maintenance of national and regional roads; to the Energy Vulnerability Reduction Fund to provide energy compensations. There will also be increases in the amounts for child allowances, allocations to the National Fund for Agricultural and Rural Development, staff salaries in educational institutions and sports schools at the local level, etc. // 19.07.2024 - InfoMarket.
