The Moldovan government has approved amendments to the 2025 state budget law, increasing its deficit by 304.6 million lei (+1.7%) to 18 billion 211 million lei
In particular, according to the Cabinet's decision adopted on Wednesday, the revenue side of the state budget will be reduced by 135.7 million lei (-0.2%) – from 75 billion 932 million 486.3 thousand lei to 75 billion 796.8 million lei, and the expenditure part will be increased by 168.9 million lei (+0.2%) – from 93 billion 838 million 837.4 thousand lei to 94 billion 007.8 million lei. As a result, the budget deficit will increase by 304.6 million lei (+1.7%) – from 17 billion 906 million 351.1 thousand lei to 18 billion 211 million lei. As noted in the materials of the Ministry of Finance, the adjustment of the 2025 state budget is being carried out to ensure the payment of salaries in institutions financed from the state and local budgets, to provide the necessary funds to compensate for electricity bills until the end of the year, and to make cash payments for November through the state social insurance budget, as well as other social benefits. In addition, clarifications were also required to ensure the necessary allocations to budgetary institutions for normal operations until the end of the year and in connection with the revision of expenditures and resources for projects financed from external sources. According to the government, the amendments provide for the redistribution of budget resources in three main areas: replenishment of the Energy Vulnerability Reduction Fund, coverage of salary expenses, especially for teachers, and allocation of the necessary funds for the payment of benefits and other social measures. The Energy Vulnerability Reduction Fund will be replenished by 706.6 million lei to provide assistance to the most vulnerable categories of the population. Of this amount, 463.5 million lei will be used to compensate for heating costs in the form of cash payments (through transfers to the state social insurance budget), and 232 million lei will be used to compensate for electricity costs. The total volume of the Energy Vulnerability Reduction Fund in 2025 will amount to more than 4.3 billion lei. Significant financial resources are earmarked to cover personnel costs in state-funded institutions, amounting to more than 1 billion lei, as well as transfers to local budgets, amounting to more than 914 million lei. This mainly concerns the payment of salaries in the education sector. In addition, 361.4 million lei will be transferred to the state social insurance budget for the payment of social benefits. At the same time, expenditures under projects financed from external sources have been reduced by approximately 717 million lei, based on forecasts of resource utilization by the end of the current year. At the same time, the funds available for projects aimed at modernizing agriculture will be increased. The Ministry of Finance notes that the reduction in state budget revenues is due, among other things, to a decrease in revenues for projects financed from external sources by 265 million lei, while revenues from general state budget resources will increase by 129.3 million lei. Revenues from taxes and fees will increase by 181.9 million lei (+0.3%) compared to the approved and later adjusted amounts for 2025, reaching 67 billion 016.8 million lei. In particular, VAT revenues are projected to grow by 380 million lei due to an increase in the value of goods produced and services provided in Moldova by 230 million lei and a decrease in VAT refunds by 150 million lei as a result of revenues for the first nine months of this year; a decrease in corporate income tax by 98.8 million lei; a decrease in excise taxes by 138.8 million lei due to a reduction in tobacco imports by approximately 20% over the first nine months of 2025. At the same time, revenues from excise duties on tobacco products manufactured in Moldova are expected to increase compared to the initially planned amount. It was decided to reduce grant revenues by a total of 409.5 million lei compared to the approved amount, including a reduction of 159.6 million lei in budget support grants, as all planned grants have been fully utilized and the amounts utilized were reflected in the budget at the previous stage. The amount of grants for projects financed from external sources was reduced by 249.9 million lei as a result of a reassessment of their implementation based on the progress of projects financed from external sources. On the expenditure side of the budget, it was decided to reduce appropriations for projects financed from external sources by 717.1 million lei and to increase expenditures from general state budget resources by 886.1 million lei. This change is related to spending priorities and identified shortcomings. Thus, transfers to the state social insurance budget will increase by 824.9 million lei, of which 463.5 million lei are intended for cash compensation for energy; transfers to local budgets will increase by 909.7 million lei, mainly for personnel expenses; compensation for electricity will increase by 232 million lei; personnel expenses in institutions financed from the state budget will increase by 1 billion 010.9 million lei. Expenses for the implementation of the “National Forest Extension and Rehabilitation” Program will increase by 60 million lei; expenses to ensure compliance with the regulatory framework on remuneration in state educational institutions operating under the conditions of financial and economic self-government under the Ministry of Education and Research will increase by 58.7 million lei, of which 31 million lei will come from reallocations. The amount of funds to compensate for transportation costs for individuals will increase by 15 million lei, and contributions to the voluntary association of settlements fund will increase by 4.7 million lei. At the same time, expenditures for some items will decrease, taking into account the level of budget execution for 2025. Thus, the amount of expenditures on projects financed from external sources will be reduced by 717.1 million lei compared to the approved (revised) level and will amount to about 3 billion 350.8 million lei. The most significant reduction is noticed in the following projects: “Moldova Roads III” - 126 million lei; “Moldova Forest Development Program” - 101 million lei; “Moldova Roads Rehabilitation V” - 100 million lei; “Organization of Cross-Border Traffic” - 90 million lei; “Modernization and Improvement of Rehabilitation Services Project” - 80.3 million lei; “Moldova Solid Waste Project” - 63.8 million lei; project to support “Moldova Railways” - 61.9 million lei; “Moldova Higher Education Project” - 50.5 million lei; “Moldova Roads IV” - 50 million lei; “Improvement of water infrastructure in Central Moldova” - 49.4 million lei; “Providing farmers with fertilizers” - 39.5 million lei; “Moldova Rural Connectivity project” - 34.8 million lei; EU Framework Program for Research and Innovation - Horizon 2020 - 34 million lei; “Strengthening Moldova’s Disaster Risk Management and Climate Resilience” - 26.2 million lei; “Construction of a penitentiary facility in Chisinau” - 23.8 million lei; “Construction of a regional hospital in Balti municipality” - 20 million lei; Energy Sector Program - 20 million lei. At the same time, an increase in expenditure is proposed for certain projects: “Moldova Agriculture Competitiveness” - 95.1 million lei; “Moldova - Road Sector Program Support” - 94.5 million lei; “Moldova – Agriculture Governance, Growth and Resilience Investment” - 65 million lei; “Modernization of Agricultural Machinery and Equipment” - 60 million lei. External debt servicing costs will be reduced by 416.2 million lei, of which 183.3 million lei will be for the internal state debt and 232.9 million lei for the external state debt. Expenditures for mitigating budget risks have been reduced by 400 million lei, and for labor costs in the budget sector by 225.9 million lei. The amount of funding for economic reform measures under the Growth Plan for Moldova will be reduced by 145 million lei. The budget of the government's reserve funds will be reduced by 80 million lei, the National Environmental Fund by 60 million lei, and the “First House” State Program (Prima Casa) by 55 million lei. Interest payments related to servicing the state debt are estimated at 4 billion 333.3 million lei, down by 416.2 million lei or 8.8% compared to the approved (revised) amount following a reduction in both internal state debt servicing by 183.3 million lei and external state debt servicing by 232.9 million lei. // 12.11.2025 — InfoMarket
