The draft of the Law on the budget for 2007 includes incomes of over MDL 12 bln, and the deficit of the budget will constitute MDL 233 mln and will be equal to 0.5% of GDP. The draft was approved on Wednesday, September 13 by the Cabinet Council. The minister of Finance, Mihai Pop declared that the incomes will go up with MDL 1.6 mln compared with last year. The loan amounting to USD 10 mln negotiated by the World Bank was included in the budgetary incomes. These funds will be used for maintaining roadways. Budgetary expenses will be by MDL 2 bln higher compared with last year. According to the minister, the majority of expenses will be directed towards the social field, mainly for the increase in wages, paying a number of allowances, increasing expenses for children’s catering in schools (by 50% more compared with 2006) etc. The Gross Domestic Product is estimated at about MDL 46.6 mln, with a real increase of 4% compared with 2006. The average rate of inflation will constitute 10.5% in the next year compared with 11.5% planned for 2006. The Government also forecasts that the Moldovan Leu will depreciate against the US Dollar from MDL 13.4 to MDL 14.6. The draft Law on the budget for 2007 will be passed by the Parliament until the end of 2006.