Government to spend MDL 6 bln for expanding actions part of EGPRSP

The Economic Growth and Poverty Reduction Strategy Paper (EGPRSP) will be expanded only for 2007 and provides spending MDL 6 bln for actions planned to be implemented in 33 priority sectors. The Government approved on Wednesday, November 22, a decision, which provides for the extension for 2007 of EGPRSP. Thus the re-actualization of the 5th Annex is stipulated “EGPRSP implementation monitoring indicators”, 6th Annex “Policies’ Matrix/Action Plan” and 7th Annex “Indicative costs of priority actions part of EGPRSP”. According to the ministry of Economy and Commerce, Igor Dodon, the total cost of the actions to be implemented could be covered from the state budget only in a 50% proportion. The rest of the money is to be found at international bodies. Integral financial assurance has been provided for actions related to improving investment climate, regional development, public finances, fiscal system, social assistance, financial banking sector, foreign and local trade. The scarcity of the state and local budget sources will not allow though, financing some priority actions in the domain of education, healthcare, labor force market, and supporting development of small and medium-size enterprises. The government counts on financial support of donors in the respective fields a fact which would assure a general implementation of the EGPRSP actions. Igor Dodon recognized that one of the problems of EGPRSP 2004-2006 was the lack of financial means for implementing the actions provided. Asked why the Government prolonged the implementation term of EGPRSP, Dodon said that the Government was to choose between two solutions: either to work out a new strategic document of development planning for 3 to 4 years or work out an action plan for 2007. Given the fact the finalization of the R. of Moldova-EU Action plan is expected for the next year, it was considered that at this stage, the elaboration of a new strategic document would be an inopportune measure. At the same time, Igor Dodon mentioned that during the first half of 2007 a new strategic planning document will be worked out, this time for a 4-year period – from 2008 to 2011.