Draft on amendment of 2020 budget law published in Moldova's Official Journal

Chisinau, 21 April /MOLDPRES/ - The government decision on the approval of the draft law on the amendment of the 2020 state budget law was published in the Official Journal (Monitorul Oficial) today. The need of the amendment came following the assessment of the economic effects of the measures imposed in the process of management of the epidemiological situation triggered by coronavirus.   

Initially, the national budget was formed while taking into account a 3.8-per cent increase in the Gross Domestic Product (GDP) in 2020 against the year before.  

The effects of the COVID-19 pandemic on the global, regional and national  economic processes prompted the need to re-evaluate the evolution of the economic indexes and to recalculate the national public budget, while taking as basis a 3-per cent drop of GDP, which implies a cut in the budget revenues by 6.338 billion lei.In the new conditions, the budget deficit will stand at 15.975 billion lei or 7.52 per cent of the GDP.

To compensate the budget deficit, the government will use resources from the emergency loan provided by the International Monetary Fund – 4.42 billion lei, credit offered by Russia – 4.16 billion lei; issuance of state transferrable securities worth 4 billion lei, up by two billion lei than initially planned for 2020, a loan amounting to 454 million lei on behalf of the World Bank. Revenues of 700 million lei are estimated from the privatization of public assets.