Moldovan government officially submitted on Thursday a package of socio-economic initiatives previously taken under its responsibility to parliament, and they will take effect automatically if the Cabinet is not dismissed by MPs within 72 hours.
In particular, the package includes draft amendments to the Law on the Unified Payroll System in the Budget Sector, the Law on the State Budget for 2020, the Law on State Social Insurance for 2020, and the Law on Mandatory Health Insurance Funds for 2020. As noted by Prime Minister Ion Chicu, the amendments to the Law on the Unified Payroll System in the Public Sector are mainly due to the need to financially stimulate the medical staff involved in the fight against COVID-19. According to the document, the salary of the medical staff of medical institutions / units will be doubled in stages. At the first stage, medical salaries will increase by 30% from September 1, 2020, and then grow by another 30% - from January 1, 2021. Another increase - by 40% - will occur in the first half of the next year. The increase in salaries will affect 4,500 medical staff in the public sector. At the same time, amendments to the Law on the State Budget for 2020 provide for an increase in the revenue part of the state budget for this year by 52.4 million lei - up to 37 billion 851 million lei, an increase in the expense part - by 1 billion 283.8 million lei (+ 2.4%) - up to 55 billion 057.6 million lei and an increase in the state budget deficit in 2020 by 1 billion 231.4 million lei (+ 7.7%) - up to 17 billion 206.6 million lei. The amendments to the Law on the State Social Insurance Budget for 2020 stipulate that the revenues and expenses of this budget this year will amount to 24 billion 339 million 399.4 thousand lei and will increase by 469 million 584 thousand lei (+ 2%) versus previously approved indicators. At the same time, amendments to the Law on Compulsory Medical Insurance Funds for the current year provide that the income of compulsory medical insurance funds in 2020 will increase by 427 million 999.2 thousand lei (+ 5.3%) up to 8 billion 579 million 391.4 thousand lei, and the expenditures will increase by 533 million 997.7 thousand lei (+ 6.4%) - up to 8 billion 917 million 389.9 thousand lei. The previously projected deficit of 232 million lei will increase to 337.9 million lei. The approved amendments to the Law on the state budget are aimed at reducing the negative impact of the epidemiological situation on the health care system, vulnerable segments of the population, business circles, and reducing the consequences of adverse climatic conditions in Moldova. The main measures include increasing the salaries of health workers from September 1 by 30%, providing one-time assistance worth 700 lei to beneficiaries of pensions and social benefits less than 3 thousand lei per month, a 100 million lei increase in allocations for the National Fund for Agricultural and Rural Development and others measures designed to help reduce the effects of the epidemiological and economic crisis. The amendments also envisage an increase in the Agricultural Support Fund by 100 million lei; allocation of 50 million lei to increase the Bank Credit Guarantee Fund for small and medium enterprises managed by the Organization for the Development of the Small and Medium Enterprises Sector (ODIMM), provision of an additional 50 million lei for the development of entrepreneurial infrastructure within the framework of 16 industrial platforms being created in the districts of Moldova; allocation of an additional 20 million lei for the implementation of the Prima casă (First House) state program, in particular, for compensations to employees of law enforcement agencies within the framework of Prima casă-6. It is envisaged that the 2020-state budget deficit will also be financed by a new source - Omnibus macro-financial assistance in the amount of 2 billion 080 million lei - the equivalent of 100 million euros provided by the European Union. Besides this, an additional issue of government securities in the primary market in the amount of 2 billion lei is provided in order to cover the deficit. The projected deficit of the national public budget in 2020 will amount to 17 billion 534.5 million lei (8.26% of GDP). // 09.07.2020 - InfoMarket.