Government adjusts budget for this year
The Cabinet today made adjustments to the state budget for this year. According to Finance Minister Veaceslav Negruta, the intention is to identify reserves, intra-budget economies, and redirect them to priority areas, without affecting the budget deficit, Info-Prim Neo reports.
Negruta told the Cabinet's meeting that the the intra-budget economies in eight months amounted to 103.8 million lei. The bulk, 89 million lei, were saved at repaying the internal debt, after replacing expensive bonds with cheaper ones, with practically halved interest rates (from 12-13% to 7-7.8%). Other 10 million lei were saved due to the difference in the exchange rates used at repaying the foreign debt. The remaining 4.4 million lei were withdrawn from the E-Moldova Project, for activities which can no longer be implemented until the end of the year.
The proposal is to redistribute this money in the following way: 35 million lei will be spent on organizing snap parliamentary elections; 36 million lei on building homes for the flood-affected; 4 million lei will be the Government's contribution to the CEB-financed Social Housing Project, under which two apartment houses will be built in Chisinau and another one in Glodeni town; and nearly 0.3 million lei will be used to supplement the National Fund for Regional Development.