The Republic of Moldova encounters problems in implementing projects financed with foreign funds. According to the 2018 budget fulfilment report, of the 3.3 billion lei non-utilized allocations, 2.7 billion lei was such funding, Minister of Finance Natalia Gavrilița stated in a meeting of the Parliament’s commission on economy, budget and finance, IPN reports.

“It is a worrisome tendency as the projects financed with foreign funds are implemented at a very low pace. This is one of the most important problems we have to solve. We must increase the level of absorbing the accessible funds,” stated Natalia Gavrilița.

She noted the reforms done in the fiscal sector in 2018 brought budget revenues. On the other hand, the adopted salary law implies higher than expected budget costs.

The debts of the state budget-funded institutions exceeded 790 million lei. State guarantees to the value of over 266.9 million were provided in 2018 for the “First House” Program.

After examining the report, the commission’s chairman Igor Munteanu said the public sector spending increased. The allocated funds hadn’t been always used efficiently. The MP recommended reducing the budget of the institutions that do not show power of absorption and correctness in the process during the next few years.

MP Oleg Lipskii inquired what savings were made following the central public administration reform. Tatiana Ivanichikina, secretary of state at the Ministry of Finance, could not provide figures, but said that all the made savings remained in the accounts of the reformed ministries. Even if the number of staff units was reduced in 2017, the salary fund for the central public administration remained the same.

Commission member Ludmila Guzun requested the Ministry of Economy to draw up an absorption plant.