Moldovan parliament to make technical amendments to state budget

Chisinau, 24 March /MOLDPRES/ - The parliament will make technical amendments to the state budget, needed to apply the new way of pensions’ indexation as of 1 April 2021. The parliament’s commission for economy, budget and finances approved a draft law to this effect today.    

Thus, the draft’s goal is to adjust the sources of financing the budget deficit to the modified deficit, reflect the additional allocations from the state budget for sub-programmes of expenses and according to the functional classification, to adjust the ceiling of the state domestic debt.    

The draft is to be unveiled in the parliament’s plenum.  On 12 March this year, the parliament adopted the law on the amendment of normative acts, which establishes a new mechanism of pensions’ indexation. According to the amendments, in next April, the coefficient of pensions’ indexation will represent the average of the annual increase in the consumer prices index for the last three years and in October 2021 – the rate of the inflation recorded in the first half of this year.   

The indexation mechanism will be applied for about 731,364 beneficiaries, of whom 662,475 beneficiaries of pensions and 68,889 beneficiaries of state social allocations.

photo: Parliament