GOVERNMENT APPROVES DRAFT 2018 BUDGET

At the Tuesday’s sitting, the Moldovan Government approved the draft law on 2018 State Budget. The document is based on 3% economic growth, 8% export growth and 6% import growth.

Prime Minister Pavel Filip said at the meetings that the budget potential is bigger, given the results of 2017, when the reality proved to be more positive and optimistic than the forecasts.

According to the document, State Budget revenues are planned within 36.6 billion lei (US$2.09 billion), which is 8.4% more than in 2017. The growth of revenues is explained by the raising of revenues from taxes, fees and grants. Next year, the share of grants will account for 2.8 billion lei, which is 1.6 billion more than over the current year.

Budget expenditures will account for 41.3 billion lei (US$2.36 billion), growing against the background of the planned raising of salaries, pensions, as well as costs for social assistance and education.

Budget deficit is planned at 4.7 billion lei (US$268 million). It will be covered at the expense of revenues from privatization, public property, sales of liquidated banks’ assets, as well as external sources.

The road fund will account for 1.7 billion lei, the National Fund for Agriculture and Rural Development – 900 million lei, the National Regional Development Fund – 200 million lei and the Energy Efficiency Fund – 50 million lei.

The draft budget implies a considerable raising of investment component. Next year, 54 projects, financed from external sources, will be implemented next year with a budget of 4.3 billion lei, which is two times more than this year. The most important of these concern the development of road infrastructure, competitive agriculture, as well as providing of vehicles to the ambulance service.