The Chisinau City Hall decided to tighten the belt. Mayor Dorin Chirtoaca instructed the subdivisions to make only current payments, for salaries, electric power, heat, fuel and other costs. The announcement was made in the January 2 meeting of officials of Chisinau services and divisions, IPN reports.
According to the mayor, capital repair works will not be yet carried out, except for those financed with external funds. Dorin Chirtoaca said less money will be spent until the financial situation is remedied. “We should not live in debt,” he stated.
Finance Division head Veronica Herta said the arrears total over 100 million lei. Only about 20 million lei is now available in the accounts of the local administration.
Among the reasons that led to such a situation is the fact that the revenues from the sale of municipal property were lower than projected, the poor management of funds by the municipal subdivisions and unjustified costs, stated Veronica Herta.
The 2017 municipal budget provides for revenues of 3.1 billion lei and an expenditure of 3.6 billion lei. The budget deficit is of over 450 million lei.
