The Cabinet agreed the 2021 draft state budget law that is based on an economic growth of 4.7%, a 12.6% rise in exports and a 14.3% increase in imports, IPN reports.

According to the authorities, the document was drafted taking into account the unprecedented impact of COVID-19 and of the natural calamities of 2020 on the national economy. Deputy Prime Minister Sergey Pușcuța said 2021 is expected to be a year of the recovery of losses sustained in 2020.

The state budget comes to 41.4 billion lei, an increase of 4.2 billion lei on the 2020 state budget. The rise in incomes will stem from the higher amounts collected as taxes and from the incoming grants.

The state budget expenditure is of 55.4 billion lei, an increase of 4.1% on the state budget approved in 2020. Of the total expenditure, 53% represents the transfers to other budgets, while 47% – the costs of program implementation in 2021, directly through the central public authorities.

Also, the current cost programs will be financially covered in in 2021. This refers to the Road Fund totaling 2.4 billion lei, 1.5 million lei of which will go to repair and maintain national roads, while 958.3 million lei will be used to maintain local roads, the National Agriculture and Rural Development Fund of 900 million lei, the National Regional Development Fund of 1.1 million lei, etc.

The state budget deficit was projected at 14 billion lei. This will be financed with foreign funds, such as inflows of foreign loans in budget support and implementation of projects financed with foreign funds, and also with internal resources, including proceeds from the privatization of public property.