The Government is considering the possibility of increasing the salaries in the public sector, said President Maia Sandu. According to her, the Executive is analyzing all the budget data so as to propose eventual pay raises to ensure the inflation rate is covered. The central authorities bank on internal funds and also on the budget support promised by the development partners. It goes primarily to the first tranche of the macro-financial assistance announced by the EU, IPN reports.

President Sandu said the rampant rise in prices is due to the increase in global prices and to Moldova’s dependence on imports. The food prices increased because the country is unable to process raw material. The processing industry is very modestly developed. As Moldova has the highest inflation rate in the region, the Government is considering the possibility of increasing pays.

“We will see what raises the budget can cover. We will consider the proposals that will come from the Government soon. The increase in salaries is being discussed. We are waiting for the budget analysis results to see what can be done. As regards the pensions, we had the indexation and raises that offset the rise in prices […] In the private sector, it depends on the capacity of business entities to compensate for the higher inflation,” Maia Sandu stated in the talk show “Emphasis on Today” on TVR Moldova channel.

She noted that the Republic of Moldova banks on the development partners’ assistance in overcoming the experienced economic crisis. The first tranche of the €150 million promised by the EU in budget support and the grant promised by the German authorities to support the energy vulnerability fund are expected to be transferred.

“There is also additional support on the part of the European Union. We will see when it comes exactly. Other forms of support promised by the donors do not reach the budget. It is money allocated for implementing a project, to enhance energy efficiency, for example. The budget support is smaller in amount and comes in installments,” stated the official.

According to the National Bureau of Statistics, the average consumer prices in June 2022 rose by 31.8% compared with the corresponding period last year. Food prices increased by 34.3%, nonfood prices - by 23.4%, while the services provided for the population – by 40.7%.