Minister of Finance Octavian Armașu assured the financial reinsures needed for implementing the salary reform are available, including from the higher amounts collected into the state budget. The minister provided details in the talk show “Moldova live” on the public TV channel Moldova 1, IPN reports.

“The rise in the collected amounts was possible owing to reforms done in the fiscal and customs administration sectors. Serious reforms were implemented and a lot of negative elements that existed in the past were eliminated. Now that the State Tax Service and the Customs Service were restructured, they work more efficiently and this year we have a 20% rise in the amounts collected by the State Tax Service,” noted the official.

According to Octavian Armașu, the sums collected into the budget grow faster than the economy because the tax base was extended and the compliance level was thus increased. “In other words, more people started to pay taxes and the budget revenues increase. The larger amounts enable to do a reform of the salary system,” stated the minister, admitting that the salary reform wasn’t based on the economic growth.

Economic expert Viorel Gârbu said the pay raises are not essential. It is suggested raising the salaries by 30% on average during three years and the rise is not significant compared with the previous period.

“In my opinion, the common approach to the budgetary system is the main success of this reform. But it should be determined if this is god or bad. On the one hand, the salary raises should cover all the budget-funded employees. On the other hand, this standardization not always generates performance,” stated Viorel Gârbu, noting the economic growth of 4.5% is not so high to allow increasing salaries.

The new law on the salary system in the budgetary sector was finalized and is to be proposed for public consultations. The authorities aim to have the law adopted during the current parliamentary session so that it takes effect on December 1 this year. The initiative envisions higher salaries for employees of the health, education and culture sectors and for representatives of the local public authorities.