The Moldovan Parliament adopted in the first reading the draft Law on the state budget for 2025 with a deficit of 13.89 billion lei (4% of GDP)
In particular, state budget revenues in 2025 are expected to amount to 71 billion 553.9 million lei, an increase of 4 billion 543.3 million lei (+6.8%) compared to the revised figures for 2024. At the same time, state budget expenditures for 2025 are planned at 85 billion 447.9 million lei, which is 3 billion 333 million lei (4.1%) more than the revised amount for 2024. As a result, the state budget deficit next year is expected to be 13 billion 894 million lei (4% of GDP). The increase in revenues next year will be supported by the economic recovery, as well as the impact of budgetary, tax and customs policies. The revenue forecast is largely based on the increase in tax and fee revenues, which will provide about 93% of all state budget revenues, with an expected increase of 8.7%. Grants will account for 1.7% of state budget revenues: the amount of grants will decrease by almost 52% - to 1.2 billion lei, including grants to support the budget in the amount of 317.8 million lei and grants to finance projects from external resources - 918.3 million lei. Another 3.8 billion lei are other revenues (dividends from equity participation in state capital of companies, deductions of net profit of state-owned enterprises, land lease, etc.). Among the most important measures planned in the budget for next year are an increase in salaries for some categories of public sector employees, provision of energy compensations, as well as an increase in social benefits. The document provides for a 15% increase in salaries for healthcare workers and 9% for teachers. Salary increases are planned for police officers and rescuers, as well as specialists from the National Probation Inspectorate and the National Administration of Penitentiary Institutions. In total, the salary increase will affect about 170 thousand public sector employees, including 50 thousand healthcare workers. The minimum salary in the public sector will reach 5,500 lei. It is also planned to increase the minimum old-age pension to 3,300 lei for people with at least 40 years of service from May 1, 2025. Pensions and other social benefits will be indexed by 6.1% from April 1, 2025. According to the authorities, the 2025 budget is a budget of solidarity and social support, and the increase in revenues will be a consequence of the economic recovery and the impact of fiscal, customs and revenue management measures. Capital investments will increase by 18% due to the launch of 12 new projects. More than 20.7 billion lei are allocated for social protection of the population, which is 24.3% of state budget expenditures. The lump-sum benefit paid at the birth of a child will increase to 21,350 lei. The monthly benefit received by rehabilitated victims of political repression will also be increased. To increase social payments to war veterans, 120 million lei will be allocated. It is envisaged to pay energy compensations for vulnerable consumers in winter. The share of state budget expenditures on education will be 23%, or almost 20 billion lei. 205 million lei will be allocated for free meals for students in grades V-IX in educational institutions from September 1, 2025. 147 million lei are planned to be allocated for buses, computers, furniture in 20 model schools across the country. Technical projects for the complete reconstruction of another 15 schools will also be implemented. Over 9.1 billion lei are planned to be allocated for the economy in 2025, which is 10.7% of the total state budget expenditures. At the same time, 88% of this amount is provided for economic sector development programs. For example, in the transport sector, expenses of over 4.1 billion lei are planned, which are intended for the repair and maintenance of local and national roads. About 94.1% of the state budget expenditures are planned to be covered by general resources, and 5.9% - by income from the provision of paid services, grants, loans, donations, etc. In total, 78 projects with external financing are planned to be implemented next year; they are aimed at developing road infrastructure, supporting higher education, waste management, modernizing agricultural machinery and equipment, developing competitive agriculture, etc. About 3.1 billion lei are intended for agriculture, and 176 million lei - for supporting small and medium-sized businesses. The state budget deficit for next year in the amount of 13.89 billion lei is planned to be covered by internal resources, such as revenues from the sale of state property (200 million lei), the sale of assets of banks undergoing liquidation (200 million lei), the issue of securities on the primary market (8.5 million lei), etc., as well as by external sources, including external loans to support the budget and the implementation of external financing projects (9.5 million lei). Members of Parliament from the Communist and Socialist Bloc faction criticized the authorities for the lack of transparency in the process of reviewing the draft state budget for 2025, noting that it was approved by the government only yesterday, along with the draft budgets for social and health insurance, and is already being reviewed at a plenary session today. The deputies did not have the physical opportunity to analyze complex documents with a large amount of information in such a short period of time and prepare for their discussion. Herewith, according to the law, the government had to send the draft budgets to the parliament by October 15, but was almost 2 months late. Chairman of the parliamentary commission on economy, budget and finance Radu Marian admitted that the deputies had little time to study the draft Law on the state budget for 2025, but noted that the parliamentarians will be able to study the document in detail and make their proposals on it for the second reading, and the authorities' actions are aimed at the earliest possible final adoption and publication of all budgets by the end of the year. // 05.12.2024 — InfoMarket
