City Council adopts 2008 Chisinau budget

The City Council (CMC) adopted today in final reading the 2008 Chisinau budget with the vote of 26 members of the majority coalition. The Communist and Christian-Democrat councillors abstained. The budget as adopted provides for expenditures of 1.63 billion and incomes of 1.58 billion lei for. The deficit of 54.1 million lei is supposed to be covered by incomes from sales of municipal property. Compared to 2007, the 2008 budget is by 269 million lei (20.5%) larger. As Deputy Mayor Mihai Furtuna said, the budget for the next year is rather scarce, falling short by 55% of the estimated 2.86 billion lei required to fit the city’s needs. The expenditures are planned to be distributed as follows: 75 million lei for public order, which covers only 65% of the real needs; 698.6 million lei for education (80% of the needed amount), 56 million lei for culture (100%), health care – 30.1 million lei (71%); transport and road management – 149.3 million lei (62%); communal management – 187.4 million lei (32%). The sum earmarked for capital investment is 86 million lei, which makes up only 9% of the needed amount. The 2008 budget introduces a new budget item - 180.9 million lei will be used to provide financial assistance to the unprivileged population, including by paying utility bills for them. The City Hall’s Reserve Fund will be 15.5 million lei, of which 10 million lei will be also used to assist unprivileged population. A number of councillors blamed the central authorities for the scarcity of the municipal budget, as they appropriate a large part of the city’s revenues collected from Chisinau taxpayers. The Social-Democrats said they endorsed the budget because, despite its scarceness, the municipality managed to find the 180 million lei that will be directed to support the underprivileged people. Mayor Dorin Chirtoaca said he wished the 2008 budget had focused more on investment and development, however, as things stand now, it will be used to cover the gaps left by the previous city administration. He stated that the way the local finances have been managed in the last half a year cannot arouse suspicions, adding that a strict monitoring of public expenses will be further ensured.