Until the Executive Board of the IMF approves a new cooperation program with the Moldovan authorities, the Government must amend the 2016 state budget, consider experts of the Institute for Development and Social Initiative “Viitorul”.
“The 2016 budget provides for revenues of 52.7 billion lei. This figure, even if Moldova has a program with the IMF and even if all the financing promised by the European Commission and other donors is provided in the form of budget support, is unreal,” “Viitorul” expert and ex-MP Veaceslav Ionita said in a debate.
Expert Sergiu Gaibu said the external donors whose money go to implement investment projects in Moldova could review some of the points of the financing agreements signed earlier with the Moldovan authorities, which is normal given that things changed.
The experts analyzed Moldova’s options if an agreement with the IMF is signed and the possibilities of increasing budget incomes. Among these options is to improve fiscal administration, but not by blocking the accounts of economic entities and not by imposing exorbitant fines, because the real sector is already subject to great pressure given the high interest rates on the loans raised at the end of 2014 and in 2015.
Privatization is another source of incomes, but this process should take place in conditions of maximum transparency, including when more expensive assets are to be privatized. The optimization of costs is the third option.
If these actions are implemented, we could witness a budget deficit of about 6 billion lei at the end of this year. The people will not feel this directly, but indirectly, fewer roads will be repaired, fewer water supply systems will be built and fewer necessary utilities will be provided.
