Moldovan government expects a GDP growth of 2% and an average annual inflation of 14% in 2023.
This was stated by Finance Minister Veronica Sireteanu in an interview with Vocea Basarabiei. She noted that this economic growth is not enough, and, accordingly, the authorities need to invest as much as possible in infrastructure, to promote economic development in order to maintain jobs and develop related industries. She noted that the obligatory element of GDP growth is public expenditure or investment, accordingly, it is necessary to reallocate some of the revenues that are available for investment, and this will happen within the adjustment of the State Budget Law for 2023. According to her, as a rule, these changes to the budget are made in the second half of the year, when there is a clear picture of revenues and expenditures. Now, however, the adjustment will be made earlier to allow funds to be reallocated to investments. "We entered the new year after another year of painful crises. The budget had a very pronounced social connotation. The potential economic growth this year will be 2%, and with inflation at 14%, this is not enough. Accordingly, we must think about how to ensure economic development. GDP growth has as a necessary element government spending or investment. Accordingly, part of the revenue must be allocated to investment. Construction takes place in the summer, and if we don't fix the budget before then, fixing it in the summer may not help anymore. That's why we will have an earlier adjustment to the state budget, so that some of the money saved can be focused on investment. The state has to help the economy grow. When investments are made, it means that a big part of the related industries linked to those investments supports jobs and provides profit," explained the Minister of Finance. As InfoMarket Agency earlier reported, the Moldovan Parliament adopted the Law on State Budget for 2023 with a deficit of 18 billion 327.3 million lei. Particularly, the revenue side of the state budget this year is expected to total 64.868 million 382.2 thousand lei (+5.5 billion lei or 9.3% against the revised figures of 2022), the expenditure part is 83 billion 195 million 682.2 thousand lei (+9.3 billion lei or a 12.5% increase) and the deficit is 18 billion 327.3 million lei (+3.7 billion lei or a 25.6% increase). // 03.04.2023 - InfoMarket.
