Moldovan parliament adopts state budget law for 2017
17:33 | 16.12.2016 Category: Economic
Chisinau, 16 December /MOLDPRES/ – Parliament adopted today the final reading of Law on State Budget for 2017, with revenues amounting to 32.8 billion lei, expenditure amounting to 36.99 billion lei and a deficit of around 4.2 billion lei.
State budget revenues are expected to increase in 2017 by 10.8 per cent compared to stated budget for 2016, reflecting the increased revenue from taxes 8.4 per cent and grants inflows with 47.0 per cent, reads the explanatory note attached to the document. Receipts from taxes represent 86.1 per cent of the state budget revenues forecasted for 2017.
By the law, state budget expenditures will increase by 9.4 per cent compared to 2016. The budget deficit will be covered mainly from foreign sources.
The parameters of the National Public Budget revenues are estimated at 51.6 billion lei, up 9.9 per cent from the estimates given in 2016, and expenditure to 55.3 billion lei. Projected budget deficit is $4.3 billion, the deficit approved in 2016. The share of public budget deficit to Gross Domestic Product (GDP) will be 3.0 per cent versus 3.2 per cent in 2016.
Current expenditure for 2017 represents 88.6 per cent of total expenditure, while the capital – 11.4 per cent. Fund for subsidizing agricultural producers will be allocated 900 million lei, of which 231 million lei in the budgetary support ENPARD Program account the European Commission. Road fund will be 1 billion 830 million lei, the Regional Development Fund – 200 million lei and Energy Efficiency Fund – 100 million lei. From the state budget to cover state social insurance budget deficit will be awarded 1.4 billion lei.
According to Finance Ministry, state debt balance will increase by 12.8 per cent up to 60.8 billion lei. Its share in GDP will rise to 42.6 per cent. The state external debt is projected to grow by 19.7 per cent to $1,893.0 million.
The state budget for 2017 was built on an economic growth of 3.0 per cent, an inflation rate of 4.4 per cent and an exchange rate of about 20.00 lei per dollar. Average salary for next year is projected at 5 300 lei, up from 2016 by 7.6 per cent in nominal terms. The Finance Ministry is counting on a recovery in foreign trade, exports increased by 10 per cent and imports by 9 per cent.
Also today, Parliament adopted in the second reading the draft law on fiscal, tax and customs policies.
(Reporter A. Plitoc, editor L. Alcaza)
