TRANSNISTRIAN PARLIAMENT APPROVES INCREASE OF SALARIES AND PENSIONS BY 7%

The Supreme Soviet of the unrecognized Transnistrian Moldovan Republic (PMR) has adopted in the first reading the draft budget for 2019, approving its main parameters.

The deputies have also supported the initiative of Transnistria president Vadim Krasnoselsky to increase pensions and salaries of public sector employees by 7%, which will require an increase in expenses by 124 million rubles (US$7.7 million) for salaries and 91 million rubles (US$5.6 million) for pensioners.

By the second reading the Transnistrian parliament will have to find sources to cover the expenses.

"In order to find additional sources, we will have to donate funding to other areas, especially, for the purchase of medical equipment. Revenues from excise taxes are also considered as additional source", said Alexander Korshunov, chairman of the parliamentary committee for economic policy, budget and finance. He is instructed to present sources of additional expenditures until November 21.

The draft budget for 2019 adopted by the Transnistrian government did not envisage increase in salaries and pensions; however, recently, Krasnoselsky has signed an order on the relevant amendments to the draft budget for 2019.

According to the document, the consolidated budget revenues will account to 2.832 billion rubles (US$175.9 million), and expenditures 4.515 billion rubles (US$280.4 million). It is planned to cover almost two billion deficits at the expense of credits of the Transnistrian Central Bank (TCB) and legal entities, as well as "gas money" - consumers' payments intended for payment of gas to the Russian Gazprom. The region's debts before the gas company have exceeded US$6 billion rubles.