Moldovan government approves the draft Law on the 2021 State Budget with a deficit of 13.98 billion lei.
In particular, it is expected that next year's state budget revenues will amount to 41 billion 415.4 million lei (+ 4.2 billion lei (11.3%) to the adjusted indicators for 2020), expenditures - 55 billion 399.6 million lei (+2.2 billion lei (4.1%) to the adjusted indicators for 2020), and the deficit is expected at 13 billion 984.2 million lei. As Deputy Prime Minister and Finance Minister Sergiu Puscuta noted, the draft law on the 2021 state budget was based on the updated forecast of macroeconomic indicators, fiscal policy for the next year, and is was also taken into account the unprecedented impact of the COVID-19 pandemic and the severe drought of 2020 on the national economy. The draft state budget for 2021 was drawn up taking into account the forecasted 4.7% growth of Moldova's GDP next year, the 2.7% inflation, the 12.6% increase in exports, the 14.3% increase in imports, the 10.3% increase in the average salary in the economy. Sergiu Puscuta stressed that strengthening the budgetary and fiscal position and responsible management of public finances will remain the main task for the government in 2021. The main policy measures contained in the draft budget for 2021 relate to business support, salary increases for public sector employees, increased spending for health care and other industries, social policy. So, in 2021, as part of business support measures, it is planned to continue subsidizing jobs and allocate 200 million lei for this. Subsidizing of interest on loans of economic agents will also continue, for which the state will allocate 30 million lei next year. To provide loans on preferential terms to small and medium-sized enterprises through commercial banks, 413 million lei have been allocated. Resources are provided for VAT refunds against payroll taxes, for economic agents in agriculture affected by natural disasters, etc. Also, the draft state budget for 2021 provides for a gradual increase in the salaries of workers in the public sector. In particular, from January 1, 2021, the salaries of doctors will again increase - by 30%. In health care, in addition to increasing salaries, the provision of medical facilities with medical equipment and their support in the fight against COVID-19, the introduction of specialized national programs will continue. In the field of social policy, many measures are envisaged to increase benefits for socially vulnerable groups of the population. Of the total expenditures, about 29.4 billion lei (53%) will be transfers to other budgets - social insurance, compulsory medical insurance funds, local budgets. 46% of the costs are spent on the implementation of various programs directly by the central authorities. According to the head of the Ministry of Finance, the costs of implementing projects financed from external sources in 2021 are planned at the level of 3 billion lei and will amount to 5.4% of the total state budget expenditures. In 2021, it is planned to implement more than 80 projects financed from external sources, of which the most important are the following projects: support in the repair of national roads - 819 million lei, restoration of local roads - 334 million lei, education reform - 159 million lei, emergency response to COVID -19 - 191 million lei, urgent support to reduce the consequences of the pandemic - 625 million lei. It is planned to allocate 73 million lei for the project to build a new penitentiary institution in Chisinau, and 71 million lei - for the project to improve the water supply infrastructure. In addition, the draft state budget for 2021 provides for financing of current expenditure programs: Road Fund - 2 billion 490 million lei, “Good Roads” - 900 million lei. The National Fund for the Development of Agriculture and Rural Areas in 2021 will amount to 1.1 billion lei, the National Ecological Fund - 500 million lei, the National Fund for Regional Development - 220 million lei, the Grape and Wine Fund - 44.1 million lei, the Energy Efficiency Fund - 30 million lei. In general, capital expenditures are planned at 5.3 billion lei (+380.9 million lei by 2020), while capital investments are expected to amount to 1.6 billion lei (+49.4 million lei by 2020). Sergiu Puscuta stressed that the increase in state budget revenues in 2021 is planned to be achieved by increasing the collection of taxes and duties, which will reach 38.2 billion lei. It is also expected that the receipts of grants and other revenues of the state budget will increase by 1.1 billion lei and 2.1 billion lei, respectively, which will be 19% and 3.7% more than in 2020. Deputy Prime Minister, the Minister of Finance noted that out of the budget deficit-2021 of about 14 billion lei, the deficit for the main components will amount to 11.7 billion lei (83.5% of the total), and the deficit for projects financed from external sources will amount to 2.3 billion lei (16.5%). The main source to cover the state budget deficit next year will be external funds - loans to support the budget and the implementation of projects financed from external sources. In particular, the matter concerns finances from the EU, IMF and WB. In addition, internal sources will also be used to cover the deficit - funds from the sale of government securities, income from privatization of state property and funds retrieved from the stolen billion. The balance of the national debt as of December 31, 2021 is expected to amount to 84.9 billion lei, and its share in GDP in late 2021 will not exceed 38.3%, which will be about 4.6 percentage points higher than expected updated indicator in late 2020. // 01.12.2020 - InfoMarket.
