Deputy Prime Minister, Finance Minister Sergiu Pușcuța, says that the budget deficit of 7.4 billion lei, provided in the draft state budget law, which has been recently approved by the Government and is to be debated in Parliament, will be covered by both internal resources and external financing. The minister claims that the direct difference between revenues and spending is of 2.6 billion out of the total amount of 7.4 billion-deficit. The other part, of 4.8 billion lei refers to the investment component, which, according to Sergiu Pușcuța," is not a deficit that would create a serious danger for the sustainability of the budget", IPN reports.
Sergiu Pușcuța states that the budget deficit of 7.4 billion lei consists of two major components: the deficit of the basic component and the deficit of the investment component. "Total deficit is calculated according to the budget calculation formula. As for the investment component, this is the component which provides that the deficit reflects all the amounts of foreign loans or financing attracted by the Republic of Moldova, which are earmarked for investment. The basic component is the component perceived as the direct difference between revenues and spending. For the basic component, the deficit planned for 2020 constitutes 2.6 billion lei”, stated the minister on " Moldova live " program on Moldova 1 public TV station.
In order to cover the deficit for the basic component, the draft state budget law provides for the placement of state securities, their sale to financial institutions that would generate revenues of two billion lei. Also, about 500 million lei revenues from privatization and 200 million from the recovery of assets of the three banks looted as a result of the banking fraud - Banca de Economii, Banca Socială and Unibank - are envisaged. At the same time, the minister reminds that for 2019 the deficit of the basic component was of 3.5 billion.
As to the 4.8 billion deficit related to the investment component, Sergiu Pușcuța argues that this deficit does not pose substantial risks for the sustainability of the budget. "The investment deficit is a conventional one," the minister said.
According to him, a Government’s obligation under the draft budget law was not to cut back on social commitments to the citizens. Thus, it became a budget of investments and social support. "All these commitments, related to salaries, social support and investments, are included in the draft laws for next year. All these activities can be found in the expenditure part of the budgets and their financing sources are also indicated,” continued Sergiu Pușcuța.
Minister of Finance acknowledges that the budget drafts were at an advanced stage of development at the Ministry of Finance and at the Ministry of Health, Labor and Social Protection and that the current executive took them up, "corrected certain aspects and placed the emphasis in accordance with the governance program". "We saw the draft on November 14, on the first day when we assumed office. This document had been presented, the draft was ready. We only adjusted it, making certain amendments that we considered appropriate. We eliminated some shortcomings that still existed in our opinion. I refer to the spending part, the investment part, here we have engaged in an exercise to diversify those investments to make them more imposing and important for the economic development of the country, while preserving the social focus”, noted the head of the Ministry of Finance.
Minister of Finance argues that the development of the budget was based on the macroeconomic trends presented by the Ministry of Economy, including the planned increase of the Gross Domestic Product by 3.8%, the envisaged exchange rates of the national currency against the foreign currencies, the forecasted imports and exports. "The revenues provided in the state budget draft approved by the Government did not undergo changes, as compared to the draft prepared by the previous executive", mentioned Sergiu Pușcuța.
