Parliament passed in two readings an increased budget for the force structures and a reduced one for the social sphere for the next year

The draft of the state budget for 2007 provides incomes of MDL 12.088 bln and expenses of MDL 12.161 bln, with a budgetary deficit of about MDL 73 mln. Parliament passed the bill, in first and second reading, on Friday, October 20, with the votes of communist and democrat MPs, although it was contested by the majority of the MPs representing the opposition. According to the draft, total incomes planed for the next year exceed by more than MDL 1.6 bln or 15.4% the figure planned for 2006. Tax collection will top MDL 9 bln or about 77% of the budget, of which the most important part are indirect incomes. On the other hand an increase in incomes from VAT taxing, income tax collecting and from applying excises to different products are planned. At the same time accumulations will be reduced from applying excises to tobacco products as well as petroleum products, others than gasoline. The expenses of the state budget for the next year are greater than those planned for the last year by about MDL 1.6 bln or 14.7%. Basic expenses for 2007 are estimated at circa MDL 10 bln or 82.6% from the structure of all expenses. The main objectives of the basic policy and strategies of administrating of public finances imposed by the Government for 2007 are supporting priority policies of creating favorable conditions for business activities, those related to investments as well as foreign trade; promotion of flexible policy of the exchange rate of the national currency; correlation of budgetary allocations with priority policies and measures of expenses mentioned in legislative and normative acts etc. Several MPs representing the opposition criticized the bill, mentioning that it is amorphous and it doesn’t establish clearly the priorities of the Government, provides big sums for force institutions and little allocations for social domains etc. The project was adopted in first and second lecture by 64 MPs. Till the end of the year it is to be debated in the third reading.