The year 2019 was generally ended rather well given the electoral and political particularities of the year, with a budget deficit of 1.4% and an economic growth of 3.6%, Prime Minister Ion Chicu said when presenting a report on the work done during a year of his appointment. He estimated that the GDP in 2020 will decline by at most 6.5%, IPN reports.
Ion Chicu noted that the budgetary-fiscal and economic performance of the country in 2019 and 2020 shows that Moldova is already immune to the shocks caused by politicians. The pandemic was the main blow in the period and the involvement of the political class and speculations were the main problem in containing the pandemic. The negative effect of the pandemic was felt in April-May, when the budget losses came to billions. The GDP in the second quarter of the year decreased by 14%.
The negative impact was offset by the economic-budgetary results achieved in the first months of 2020, when a sum that was by 1.6 billion lei higher than in the corresponding period last year was collected. To support the economy, the Government offered assistance primarily to those that paid taxes into the state budget. About 300 million lei was allocated in support of farmers and approximately 150 million lei in support of business entities. The unemployment benefit was trebled, the patent holders were helped and money was allocated for investments.
In the future, the Government aims to implement an economic recovery policy that will envision the optimization of the normative framework, adjustments to the taxation regime, stimulations in the creation of jobs with advantages for the diaspora and young specialists.
A new program is negotiated with the IMF and two conditions need to be met for this to be signed – adoption of a law on the independence of the National Bank of Moldova and appointment of three vice governors at the Bank. The cooperation with the IMF is important as it ensures additional safety for the macro-economic situation.
The Chicu Government was invested on November 14, 2019 as a result of the removal of the Government led by Maia Sandu by a no-confidence motion. When presenting the Cabinet members, Ion Chicu said this is a minority, transition government that will work until the next presidential elections.
