The revenues and expenditure of the state budget for 2017 will be increased by 385.9 million lei each. The budget deficit will yet remain unchanged, IPN reports, quoting amendments approved by the Cabinet.
The most important changes include the increase in the allocations from the state budget to local budgets and the allotment of a part of the road fund to these. Thus, the allocations for the Ministry of Transport and Road Infrastructure were reduced by 350.3 million lei and this money will be transferred to the local public authorities of the second level for managing district roads. The amounts transferred to the local budgets of the first level will be raised by 385.9 million lei as a result of the exclusion from the Law on Local Public Finances of the deductions from the tax for using roads by motor vehicles registered in Moldova. The sum is included in the state budget revenues.
There will also be created a liquidity reserve of 2 billion lei.
”This reserve does not imply additional costs and is created in order to diminish possible risks deriving from the unpredictability of the internal financial market and particular risks related to the refinancing of the state debt, and to also improve the profile of the public sector’s debt. The liquidity reserve will not be yet used to finance the budget deficit, if only in emergencies,” Minister of Finance Octavian Armasu told the press after the Cabinet’s meeting.
The minister also said that the liquidity reserve is used in such countries as Romania, Hungary, and Turkey. The creation of such a reserve in the Republic of Moldova was discussed with the development partners, in particular the IMF, and is regarded as an instrument for strengthening macro-budgetary stability.
The bill to amend the 2017 state budget will be submitted to Parliament for examination and adoption.
