Moldovan government has approved amendments to the state budget for 2022, increasing its deficit by 28% (+4.25 billion) - up to 19 billion 386 million lei.
In particular, the bill approved by the Cabinet at a meeting on Monday, provides that the revenue side of the state budget for this year will increase by 2 billion 634.9 million lei (+5.3%) - from 50 billion 066 million 602.7 thousand lei up to 52 billion 701 million 472,000 lei and the expenditure side - by 6 billion 884.9 million lei (+10.6%), from 65 billion 202 million 602.7 thousand lei to 72 billion 087 million 472,000 lei, and the state budget deficit will increase by 4 billion 250 million lei (+28.1%) from 15 billion 136 million to 19 billion 386 million lei. This amount will reach approximately 7.1% of GDP. As the head of the Ministry of Finance Dumitru Budeanschi noted, the amendments to the state budget for 2022 were developed taking into account new circumstances for the national economy and the impact on the budget of many simultaneous crises: the energy crisis and rising prices for energy resources, which accelerated the growth of prices for basic goods and services. At the same time, the geopolitical situation in the neighboring country created risks and disturbances in trade and economic relations with Moldova's main partners. Another factor affecting the economy and the budget is a large inflow of Ukrainian refugees. Amendments to the Law on State Budget for 2022 were developed taking into account the new forecast of macroeconomic indicators, agreed with the IMF experts. It foresees the reduction of the GDP growth forecast for 2022 from 4.5% to 0.3%. The GDP in nominal terms is expected to be 273.5 billion lei in 2022 (the previous forecast was 255.7 billion lei). At the same time, the inflation forecast has been raised: 21.9% instead of 6.9% and inflation at the end of the year will be 15.7% (the original forecast was 6.1%). It is forecasted that Moldovan exports will increase by 4.5% in 2022 - up to $3 billion 286 million and imports will increase by 6.9% - to $7 billion 669 million. The deficit of the foreign trade balance will amount to $4 billion 383 million. According to the head of the Ministry of Finance, Moldova plans to receive grants of 2 billion 453.7 million lei in 2022, which is almost 2 times more than the figure approved earlier. It is planned that the sum of foreign credits proceeds to support the Moldovan budget in 2022 will increase by 5 billion 449 million lei (equivalent of $288.8 million) and the sum of credits proceeds for projects financed from foreign sources will increase by 3 billion 196 million lei. The deficit of the national public budget of Moldova in 2022, according to new forecasts, will amount to 19.78 billion lei (7.23% of GDP). In particular, the initially approved revenues to the national public budget for this year are expected to increase by 3 billion 120.1 million lei (+3.9%) - from 80 billion 872.9 million lei to 83 billion 993 million lei. Their share in GDP will amount to 30.71%. At the same time, the costs of the national public budget for 2022 were proposed to be increased by 7 billion 565.1 million lei (+7.9%) - from 96 billion 208.9 to 103 billion 774 million lei. Their share in GDP will amount to 37.94%. The balance of public debt of Moldova at the end of 2022 is not expected to exceed 102 billion 097.9 million lei and will decrease by 1 billion 213.2 million lei (-1.2%) compared to the previously approved index. The decrease is expected to be caused by a decrease of the internal public debt, while the external public debt will increase. According to new estimates, the balance of external public debt expressed in lei (MDL) on December 31, 2022, will amount to 68 billion 009.5 million lei, up 4 billion 273.6 million lei (+6.7%), compared to the initially approved index. According to new estimates, as of December 31, 2022, the balance of domestic public debt will amount to 34 billion 088.4 million lei, down 5 billion 486.9 million lei (-13.9%), compared to initially approved indicators. This will be due to the reduction of net issues of government securities on the primary market. Thus, the share of public debt in GDP will decrease by 3.1 p.p. as compared to the initial forecast and will account for 37.3% by the end of 2022. The share of the state debt in the structure of the state debt is expected to be 66.6% by the end of 2022 (vs. 61.7% earlier), while the share of the internal state debt will be 33.4% (vs. 38.3% earlier). // 18.04.2022- InfoMarket.
