Moldovan government approves framework of planning public money for next three years

Chisinau, 5 October /MOLDPRES/ - The Medium Term Budgetary Framework (CBTM), on the basis of which the annual budget will be worked out, was approved at a cabinet meeting today. The document refers to the period 2023-2025 and its short-term goals are the attenuation of the economic impact of crises, directing resources to the high-level priorities and correlation with the foreign financing, the government’s communication and protocol department has reported.     

CBTM is based on prudent macro-economic policies and has as foundation the rectified budget for 2022 and the macro-economic forecast for the concerned period, elaborated by the Economics Ministry in last August.       

Thus, for 2023-2025, decision-makers estimate that the national economy will return to an ascendant trend; yet, with slower paces than it has been earlier anticipated, reaching a growth of 1.5 per cent in 2023, 3.6 per cent in 2024 and 4.2 per cent in 2025.   

As compared with the previous years, CBTM 2023-2025 does not contain information on the new fiscal measures and the estimation of the revenues of the national public budget is based on the legal provisions in force and the recent tendencies of budgetary collections.    

On a medium-term, decision-makers estimate that, till 2025, the budget revenues will increase by 28.9 per cent against 2022, the public expenses – by 22 per cent and the budget deficit will range between 4 and 6 per cent of the Gross Domestic Product (GDP). The share of the state debt in GDP is estimated to decrease from 40.4 per cent in late 2022 to 39.5 per cent in late 2025.    

The increase in revenues will be backed at the expense of the measures of fiscal and customs consolidation and economic reestablishment. The expenses will be consolidated to ensure the sustainability of the budget, protecting, at the same time, the allocations of social and investment expenses. The major share in the overall spending will represent the expenses for the social sectors (social insuring and protection, healthcare, education).    

The main priorities included in CBTM 2023-2025 and the volume of estimations of sectoral resources will guide the public authorities in the elaboration of budget proposals for 2023. In line with these priorities, the central public authorities can include proposals for the finishing or rationalization of the present programmes, in order to provide financing to high-priority programmes.    

The medium-term priorities of the economic reforms come from the government’s action programme, Good Times Moldova, the Association Agreement between Moldova and the European Union and the commitments taken before the development partners and other sectoral strategic documents. 

Photo: Government