2008 Budget will be by four billion lei larger than this year

Following a heated hours-long debate, with a majority vote of the Communist MPs, Parliament has finally passed the 2008 Budget Law, which projects total revenues of 23.5 billion lei and expenditures of 23.8 billion lei. Revenues next year are expected to beat this year’s budget by 4.1 billion lei, or 21.2 percent. The share of the budget revenues in the GDP will make up 41.4 percent. Revenues to the State Budget will amount to 14.65 billion, by 2.5 billion more than this year, and will account for 25.8 percent of the GDP. Revenues to the state social insurance budget (without government subsidies) will add up to 5.3 billion (9.3 percent of GDP). Incomes to the mandatory health insurance fund (government subsidies excluded) are expected to reach 1.2 billion lei. Tax collections into local coffers are estimated at a total of 2.38 billion lei. The largest part of revenues to the National Public Budget – 83.3 percent or 19.5 billion lei - will be covered by tax income, a 1.7 billion (9.6 pct) rise from 2007. Out of the total tax income 56.9 percent will represent indirect taxes while the remaining 43.1 percent direct taxes. Total expenditure of the National Public Budget for 2008 will reach an estimated 23.792 billion lei, by 4.163 billion lei (21.2 pct) more than expenditures forecast for 2007. Traditionally, the biggest slice of the budget expenses – 68.4 percent – will be given to social projects. Expressed in GDP percentage, governmental social expenses will represent 28.7 pct, a 1 p.p. rise from this year. Compared to 2007, the following areas will see a considerable increase in governmental expenses: science, research and innovation (+41.6 pct), transport and road management (55 pct), judicial system (38.3 pct). The Budget Law aroused criticism among the Opposition MPs, who said that the document will not encourage economic growth in Moldova. The also said the budget is highly politicised, because it prioritises expenses depending on the interests of the ruling party. On the other hand, the Communists maintained that the Budget is very practical and structured, and meets the budgetary and tax policies for 2008.
  • deputatul nicolae bondarciuc anunta cifrele de baza ale bugetului.mp3
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