Moldovan parliament passes state budget for 2019

Chisinau, 23 November /MOLDPRES/ - The parliament passed the draft state budget law for 2019 in the first reading today.   

The state secretary at the Economics and Infrastructure Ministry, Vitalie Iurcu, presented the document. “The budget was worked out following consultations with the International Monetary Fund. The macroeconomic forecast sees that the Gross Domestic Product (GDP) will increase by four per cent in real terms against 2018. The exports in 2019 will increase by 13.1 per cent and the imports – by 9.4 per cent. The labour remuneration fund will increase, in nominal values, by 9.4 per cent and the gross average monthly salary on the national economy will increase and will reach 6,975 lei,” Iurcu said.    

At the same time, Finance Minister Octavian Armasu said that the forecast of economy’s development and the goals of the fiscal and customs policy for 2019 had stayed at the basis of the draft state budget law. “According to estimations, next year, the revenues of the national public budget will grow by 9.4 per cent against this year and the expenses – by 9.7 per cent, with the budget deficit reaching 2.7 per cent of the GDP against 2.6 per cent in 2018,” Armasu noted.  

Referring to the state budget revenues for 2019, the official said that they are planned to stay at about to 42,125.5 million lei, up by 5,203.5 million lei or 14.1 per cent against the present budget. As much as 88.6 per cent of the revenues come from collections of taxes and duties, increasing by 12.6 per cent against this year. The entries of grants for backing the budget and for projects financed from external sources are forecast to be worth 1,960.2 million lei. The other revenues will account for 6.7 per cent.  

The state budget expenses for the next year are seen to amount to 47,664.2 million lei, increasing by 5,679.7 million lei or 13.5 per cent against the spending envisaged for 2018. The expenses are prompted by the need to financially cover the priorities of the branches, according to the documents of national and sectoral policies.  

As much as 1,024.1 million lei will be earmarked for the road fund, 950 million lei – for the repair of national public roads, 900 million lei – for the national fund for development of agriculture and rural environment, 480 million lei – for the Energy Efficiency Fund, 289.9 million lei – for the national ecologic fund, 86.1 million lei for the fund for support of residents and 47.8 million lei – for the fund of vine and wine.  

Increases of allocations are stimulated for the social protection – 2,207 million lei, which is by 29.9 per cent more against 2018, 737.2 million lei – for services in the economic sector, - up by 9.9 per cent against 2018, 647.2 million lei for education, which is by 6.5 per cent more against this year.

The state budget deficit is estimated at 5,538.7 million lei and is to be financed both from external sources and domestic ones.  

According to estimations, the balance of the state debt will not exceed 63,011.5 million lei at the situation on 31 December 2019, of which 59.1 per cent is the state foreign debt and 40.9 per cent – internal state debt, registering an increase of 6,035 million lei against the value specified for the end of 2018.  

Representatives of the opposition criticized the draft state budget, noting that “the present growth of investments would be very poor.” They said that “the budget would be made based on the financial support on behalf of the European Union and in this situation there would be a risk for the resources not to reach Moldova, if the financing is suspended.” At the same time, the MPs of the Democratic Party thanked the authorities for the good management of the economic sector and appreciated the increase in exports, of GDP. Also, they showed optimistic about the positive forecasts. Lawmakers also demanded the earmarking of additional sums for such sectors as culture, agriculture, development of tourism and providing support to persons with disabilities.    

The draft state budget law for 2019 is to be adopted in the final reading.