The Moldovan Parliament adopted in the second reading the draft Law on the state budget for 2025 with a deficit of 13.89 billion lei (4% of GDP)
In particular, it is expected that the state budget revenues in 2025 will amount to 71 billion 553.9 million lei and will increase by 4 billion 543.3 million lei (+6.8%) compared to the revised figures for 2024. At the same time, the 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 budget, tax and customs policy measures. 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 enterprises, land lease, etc.). Capital investments will increase by 18% due to the launch of 12 new projects. Among the most important measures planned in the budget for next year are the increase in salaries for some categories of public sector employees, provision of energy compensations, and an increase in social benefits. During the second reading, an amendment was adopted, according to which the salary of teaching staff with an academic degree will increase by 15.2% compared to the current year, depending on the academic degree. The highest increase will be received by holders of the highest didactic degree - up to 2,016 lei. Salary increases are planned for police officers and rescuers, as well as specialists of the National Probation Inspectorate and the National Penitentiary Administration. In total, the salary increase will affect about 170 thousand public sector employees, including 50 thousand employees of the medical system. The minimum salary in the budget sector will reach 5,500 lei. It is also planned to increase, from May 1, 2025, the minimum old-age pension to 3,300 lei for people with at least 40 years of experience. From April 1, 2025, pensions and other social benefits will be indexed by 6.1%. Also, in the second reading, an increase in salaries for employees of the State Hydrometeorological Service was approved. Thus, from January 1, 2025, their salaries will grow by 5%, and from May 1 - by another 9%. 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 economic recovery and the impact of fiscal, customs and revenue management measures. 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. 120 million lei will be allocated to increase social benefits to war veterans. It is envisaged to pay energy compensations for vulnerable consumers during the winter period. The cost of guarantees provided under the Prima Casă and Prima Casă Plus programs has also been increased - from 3 billion to 4.5 billion lei. The share of state budget expenditures on education will amount to 23% (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. During the second reading, 10 million lei were approved for the completion of the major overhaul of the Social Innovation Center - a coworking space offered to youth organizations to strengthen the potential and expand social innovation projects. An additional 30.5 million lei have been allocated for the development of high-performance sports. Over 9.1 billion lei (10.7% of total state budget expenditures) are planned for the economy in 2025. Herewith, 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 state budget expenses 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 - to support small and medium-sized businesses. An amendment on the allocation of 50 million lei to support the business environment and attract investors was adopted during the second reading. 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). // 19.12.2024 — InfoMarket.
