Moldovan state budget for 2017 rectified

Chisinau, 10 March /MOLDPRES/ – The Parliament adopted today the amendment of the state budget for 2017 with increases in the amount of 385.9 million lei revenue and expenditure of the general consolidated budget. The money are to be obtained throughout the tax increase for using roads by motor vehicles registered in Moldova.

The most important adjustments aimed at increasing transfers from the state budget to local budgets and allocation to this part of the road fund. Similarly, the Ministry of Transports and Road Infrastructure’s allocations were reduced by 350.3 million lei, the amount due to be transferred to the local authorities’ level two for road management at district level. Also, the transfers to local budgets of first level were increased by 385.9 mil. lei, following the exclusion of the Law on Local Public Finance breakdowns from the road use tax by vehicles registered in Moldova. The amount is provided in the state budget revenues.

The document of budget amending also requires creation of a reserve of cash in the amount of 2 billion lei. In essence, this reservation does not involve additional cost and is designed to reduce potential risks arising from the unpredictability of domestic financial market, namely the risk of refinancing debt and improve, per general public sector, debt profile. But liquidity reserve can not be used to finance the budget deficit, allowing only for exceptional circumstances.

The cash buffer is used in such countries as, Romania, Hungary, and Turkey. The creation of a similar reserve in Moldova was discussed with development partners, in particular the International Monetary Fund (IMF), and is viewed like a mechanism for strengthening macro – fiscal stability.

(Reporter A. Plitoc, editor L. Alcaza)