The Cabinet on October 28 approved the medium-term budgetary framework for 2021-2023. This is the document based on which the annual budgets are drafted for the next three years, IPN reports.

“Given the unprecedented impact of the COVID-19 pandemic and the losses caused by the drought in a number of districts of the country, the medium-term budgetary framework for 2021-2023, compared with the previous documents of the kind, contains only the sector expenditure limits, without distribution by actions with concrete allocations of financial resources. These will be detailed by the central and local public authorities when presenting and discussing the annual budget,” said Deputy Prime Minister Sergey Pușcuța, Minister of Finance.

The medium-term budgetary framework for 2021-2023 is based on prudent macroeconomic policies, on the strengthening of governance of institutions. The main objectives are to fight the effects of the pandemic and to ensure economic recovery. In accordance with these priorities, the public authorities could include proposals for finishing or optimizing the existing programs so as to ensure financing for high-priority projects.

Sergey Pușcuța called on the central public authorities to optimize the costs, urging the local public authorities to focus mainly on the devising of territorial development budgets, for building roads and water supply systems, for repairing education and medical institutions.

This year, the GDP is projected to decrease by 4.5%. Exports would decline by 14.9%, while imports by 10%. Industrial production would diminish by 10%, agricultural production by 11.9%, while investments in fixed assets by 4.8%.