Moldovan finance minister foresees 4.9% budget shortfall

Moldova's budget deficit is expected to reach 4.9 percent of GDP this year, but all budget-funded salaries, pensions and benefits will be paid on time, said Finance Minister Mariana Durlesteanu, Info-Prim Neo reports. Administrative expenses have been cut by 20 percent in an attempt to economize and the local budgets currently have 581 million lei to administer, Durleasteanu told a news conference on Tuesday. Five-month government revenue reduced this year by nearly 0.8 billion lei to 8.6 billion lei, while expenses constituted 10.2 billion lei, up by 0.78 million lei on the similar period last year. The biggest budget expenses in this period were salaries, 1.1 billion lei, and subsidies to local authorities, 1.4 billion lei. External payments represented $31.5 million. “The budget deficit this year will reach 4.9 percent of the GDP. The problem now is what to fill that gap with. We have a part of the money we need from the privatization proceeds from last year, which entered the ministry's accounts at the beginning of this year. After talks with the IMF on a new agreement, we also expect financing from external sources, which will also be directed at correcting the budget shortfall”, the Moldovan finance chief said.