The Moldovan government approved the draft Law on the state budget for 2020 with a deficit of 7 billion 415.3 million lei (3.25% of GDP).

The Moldovan government approved the draft Law on the state budget for 2020 with a deficit of 7 billion 415.3 million lei (3.25% of GDP).

According to Deputy Prime Minister and Minister of Finance Sergiu Puscuta, it is planned that next year state budget revenues will amount to 44 billion 136.6 million lei and increase by 3.5 billion lei (+ 8.6%), compared with the specified state budget figures for 2019, and expenses will amount to 51 billion 551.9 million lei and will increase by 5.2 billion lei (+ 11.2%). The head of the Ministry of Finance noted that the draft Law on the state budget for 2020 was developed taking into account the updated forecast of macroeconomic indicators for the next year, according to which GDP growth in 2020 will be 3.8%, average annual inflation - 5.7%. It is expected to increase exports by 9%, imports - by 7.1%, average monthly salary - by 8.7%. Sergiu Puscuta emphasized that in general, the revenues of the national public budget in 2020 are expected to reach 69.2 billion lei (+ 8.9% to the level of adjusted indicators of 2019, or 30.4% of GDP), and expenses - at the level of 76.6 billion lei (+ 10.2%, or 33.6% of GDP). The deficit of the national public budget in 2020 will amount to 7.4 billion lei (3.25% of GDP). It is expected that next year state budget revenues from taxes and duties will amount to 40.5 billion lei (91.8% of the total income structure). Grants and other incomes are planned at 1.8 billion lei (at the same level as in 2019), or 4% of GDP. According to the head of the Ministry of Finance, out of the total budget expenditures 48% (24.7 billion lei) will make transfers to other budgets: to the state social insurance budget, compulsory health insurance funds, to local authorities. About 52% of the total state budget expenditures will be expenses on the implementation of programs directly by the central authorities. The costs intended for the implementation of projects financed from external sources will amount to 5.7 billion lei, which is 3.1 billion lei more than in 2019 (more than 2 times). In 2020, it is planned to implement 72 projects financed from external sources, the most important of which are: The road infrastructure development program with external support - 1.3 billion lei, the road sector program support projects financed by the EBRD and the EIB - 1.25 billion lei; WB-funded local road rehabilitation project - 540 million lei; education reform project - 255 million lei; construction project of a new penitentiary institution in Chisinau - 340 million lei; Livada Moldovei project - 90 million lei. Along with this, the draft state budget for 2020 provides for expenditures from the Road Fund at the level of 2.7 billion lei, including 1.7 billion lei for the repair and maintenance of national roads and 1 billion lei for the maintenance of local roads. The fund for subsidizing agricultural producers is planned in 2020 at the level of 1 billion lei, the Energy Efficiency Fund - 80 million lei, the National Environmental Fund - 298 million lei, the National Regional Development Fund - 220 million lei. The largest increase in state budget deductions will be in the economic sector, especially in the section “road infrastructure”, as well as in education, public order protection, national security, and social protection. Sergiu Puscuta noted that the budget for 2020 provides for a phased increase in salaries to state employees by an average of 9.1%, an increase in the indexation of pensions twice a year, an increase in the amount of assistance and benefits to socially vulnerable categories of citizens, financial assistance to veterans, payment of one-time allowance to pensioners and the poor in the amount of 700 lei for the holidays, providing more funds to local authorities, etc. The head of the Ministry of Finance said that the state budget deficit in 2020 will amount to over 7.4 billion lei, including 2.6 billion lei for the base component (35% of the total deficit). Projects financed by external sources will amount to 4.8 billion lei in the overall deficit structure. The budget deficit in 2020 will be covered by external sources - loan revenues to support the budget and the implementation of projects financed from external sources, as well as internal sources - issuance of government securities and income from privatization. It is expected that at the end of 2020, the balance of the total public debt will not exceed 67.5 billion lei (29.6% of GDP), while the domestic public debt will be no more than 25.7 billion lei, and the external public debt expressed in lei will be not more than 41.82 billion lei.//27.11.2019 — InfoMarket.

News on the subject