Socialist MP Zinaida Grecheanyi, who was Prime Minister and minister of finance under the Communist rule, criticizes the delay in adopting the state budget for this year. In an interview for Radio Free Europe, the politician said that without a new memorandum with the International Monetary Fund, the economic situation in the country becomes more difficult, IPN reports.
Referring to the 2016 draft state budget, Zinaida Grecheanyi said that this contains a large number of unfilled gaps. “The fiscal policy provides that a number of taxes and duties will be increased and the state budget will grow by about 600 million lei as a result. This is not so much, but anyway. The Speaker of Parliament said there will be no tax and tariff rises. So, Parliament will not accept them,” she stated.
Secondly, the draft budget is based on external financial resources such as grants and loans, which are also indefinite. “Without a program with the International Monetary Fund, we cannot say that the Government will somehow obtain those resources. It is very risky to plan that about 25% of the budget will represent foreign grants and loans,” said Zinaida Grecheanyi.
According to her, the program with the IMF is an indicator of macroeconomic stability in the country. “An agreement with the International Monetary Fund is now crucial for the current government. I would not propose such a draft budget in Parliament if I were in the Cabinet,” stated the MP.
She also said that freedom should be first of all given to the business entities and these will want to work. The business environment should be liberalized and confidence in the government should be restored. “If an accord with the IMF is not signed, we could witness again the situation of 1999-2000, when the salaries and pensions weren’t paid. The social benefits, including salaries, are now paid to budget-funded employees, despite some delays, even if many things were blocked, including investment programs and equipment purchases,” said Zinaida Grecheanyi.
She is convinced that the state of affairs can be changed by changing the system of government in Moldova, while the Government must consist of persons supporting the statehood who do not think about their pockets, but serve the people’s interests.
