Chisinau City Hall forced to cut costs

The Chisinau City Hall will have to abandon some of the plans to make investments this year, said Mayor Dorin Chirtoaca. According to him, larger investments were planned owing to the optimistic forecasts made by the Ministry of Finance yearly this year, Info-Prim Neo reports. Irina Rusnac, deputy head of the Chisinau State Tax Inspectorate, said that the projected 70 million lei will not be collected into the municipal budget this year from salary income taxes. The salaries did not rise by 21% as the Ministry of Finance forecast. “The forecasts about the collections from the salary income tax were erroneous. We expected that the planned sum will not be collected,” said the mayor. He also said that the 70 million lei that wasn’t collected will force the Chisinau administration to review the budget and to reduce the costs. “We will thus have to abandon certain plans,” stated Dorin Chirtoaca, adding details about the cuts will be made public next week. According to the State Tax Service, the revenues collected into the municipal budget over the first eight months of 2011 represented 97% of the projections.