The MPs gave a first reading to the bill to amend the 2020 state budget law on September 10. Most of them voted in favor. Under the bill, the state budget revenues will be decreased by 649.5 million lei to 37.201, 5 billion lei, while the expenditure by 1.856,7 billion lei to 53.200,9 billion lei. The deficit will be reduced by 1.207,2 billion lei, from 17.206,6 billion lei to 15.999,4 billion lei, which is 7.8% of the GDP, IPN reports.
According to Minister of Finance Sergey Pușcuța, Deputy Prime Minister, among the main factors that led to changes are the adjustment of the budget indicators based on the revised forecasts of the main macro-economic indicators, evolution of the national economy under the pressure of the effects of the COVID-19 pandemic and natural disasters, reduction in costs for some of the non-priority programs, additional support for farmers provided in the form of VAT refund, adjustment of the mandatory health insurance funds and state social insurance budget, including for increasing the one-off allowances for pensioners from 700 to 900 lei.
In his speech, PPPDA MP Igor Munteanu said that this is the third time that the state budget is amended and this is a very politicized action. The Government suggests cutting budget expenditure by 1.86 billion lei or by 570 million lei more than the last amendment. “The rectifications confirm that the Government regrettably failed to attract financial resources for financing the anti-crisis measures needed by Moldova so that it has to further cut the social costs,” he stated, noting the redistribution of funds when the budget is tight is neither equitable nor correct.
MP of the Pro Moldova parliamentary group Andrian Candu noted that the MPs have to choose between two evils – a bigger and a lesser one. On the one hand, the amended budget that was given a first reading has to be adopted as it has social elements, like the provision of 900 lei to pensioners. On the other hand, this budget is political and points to the inefficiency of the current administration. During the pandemic crisis, when the education and health sectors needed support the most, cutting 500,000 lei from the spending intended for healthcare is not appropriate.
Democratic MP Monica Babuc stated that the bill to amend the state budget brings essential reductions in all the spheres and this is not good, but namely in this conditions, four parties discussed problems related to the pandemic on the parliamentary platform, such as the pandemic, reopening of schools, holding of free and fair elections and the situation in the drought-stricken agriculture. The Ministry of Education did a great job in the period.
Socialist MP Petru Burduja said that if the Russian loan of €200 million hadn’t been annulled, there would have been enough money for all the sectors. He called on the MPs not to make populist statements and to combine forces so as to overcome the pandemic crisis easier.
The bill was drafted by the Ministry of Finance. According to the authors, all the reassessed parameters were agreed with the IMF in the discussions on the Fund’s new program for Moldova. Under the law on public finances and budgetary-fiscal possibilities, the annual budget laws are adopted after being given two readings.
