Moldovan government approves medium term budget framework

Chisinau, 21 August /MOLDPRES/- The government has approved the medium term budget framework (2019-2021). This is the main document, on the basis of which the budget for 2019 is to be worked out.

Finance Minister Octavian Armasu said that the document had been worked out in line with the target indicators of macroeconomic framework agreed during the third assessment of the economic reform programme supported by a three-year agreement signed with the International Monetary Fund.

The document aims to promote a prudent fiscal policy with a cautious debt profile, while focusing on allocating resources for social spending and economic growth-enhancing spending.

Thus, the authorities estimate that, in the medium term, budget revenues will increase in nominal terms from 57 billion lei in 2018 to 72.6 billion lei in 2021 or by 24.7 percent. The increase in revenues will be supported by GDP growth, increased foreign trade, increased excise rates and measures to strengthen tax administration.

The budget framework also stipulates that budget planning and execution will be in line with the fiscal rule, which limits the budget deficit to 2.5% of GDP, excluding grants.

(Reporter N. Sandu, editor A. Răileanu)