A budget geared to the needs of people and the business environment, this is how Minister of Finance Dumitru Budianschi describes the 2022 State Budget. However, Budianschi predicts a difficult year ahead for Moldova’s budget, to be likely affected by inflation and the pandemic. Despite this, in 2022 it is planned to increase salaries of public sector employees, partially compensate the surge in gas tariffs, and increase the National Fund for Regional Development.

“The 2022 budget is based on a government program oriented towards citizens, a program aimed at eradicating corruption schemes and losses of budget money. It is a budget that aims to support the citizens of Moldova, the business community. Next year, we will continue to face two major crises that have already hit Moldova hard, the COVID-19 crisis and the energy crisis. The increase in energy resources and the predicted inflation indicate that next year will be a difficult one”, Budinaschi told a talk show on Moldova 1.

The minister says that employees will not be taxed more, and the reference value to be applied in calculating salaries for over 72,000 public sector employees will be increased to 1800 lei, and for 103,000 employees to 1900 lei, which will mean higher net salaries.

“The entire salary taxation structure has remained unchanged. Everyone in the public sector will benefit from a salary increase due to the fact that the reference value has been raised. But some categories will benefit from a higher raise, such as drivers or employees of psycho-pedagogical assistance. Those at the level of the minimum wage will also benefit from salary increases, because the minimum wage in the public sector has been increased to 3100 lei”, said Budianschi.

The Government on Friday approved the draft 2022 State Budget, with revenues standing at 50.1 billion lei (+9.2%), expenses at 65 billion lei and a resulting deficit of 15 billion lei. The plan is to cover the deficit from foreign sources and privatization deals.