The MPs on December 1 adopted the draft state budget law for 2018 in the first reading. The budget provides for revenues of 36.618 billion lei and for an expenditure of 42.332 billion lei. According to the Ministry of Economy and Infrastructure, the draft state budget law for next year is based on an economic growth of 3%, an 8% increase in exports and a 6% rise in imports. The Communist, Socialist, Liberal and Liberal-Democratic MPs criticized the draft budget, IPN reports.
The revenues planned for 2018 are by 8.4% higher than the amounts projected for 2017. They will represent 22.9% of the GDP, an increase of 0.2% on the 2017 budget. The amounts collected as taxes and duties will make up 87.5% of the revenues.
The expenditure is by 9.4% higher than in 2017. The budget spending, except for the costs associated with projects financed with foreign resources projected at 4.317bn lei, will total 37.015bn lei, an increase of 4% on 2017.
The expenditure will rise amid the planned salary raises, the rise in pensions and due to other measures that will be taken in the social protection and education spheres. The current spending programs will be financed. The Road Fund will get 1.7bn lei, the National Agriculture and Rural Development fund – 900m lei, the National Regional Development Fund - 200m lei, while the Energy Efficiency Fund - 50 million lei.
The investment component will grow. Next year, there will be implemented about 54 projects financed with foreign resources, at a cost of 4.3bn lei, which is two times higher than this year. The most important of these projects refer to the development of road infrastructure, competitive agriculture and provision of ambulances.
In his speech, Communist MP Oleg Reidman said the Government was expected to present a calculated budget, but unprecedented negligence of the people is actually witnessed. The state should organize the life of people in a progressive way and improve it daily. The budget is based on higher indexes, but these are not correlated with the improvement of life and the coordination of the budget with the IMF is the only argument.
Socialist MP Vladimir Golovatiuc noted that the law is new, but the approaches are the old ones. The people and the business community are not supported in a veritable way. The situation in the economy continues to be bad and this is not due to lack of growth, but to lack of development.
Liberal MP Alina Zotea said the citizens of Moldova have been again cheated as the budget law is based on illusions and inflated figures. “The state budget law for 2018 does not provide sustainable economic solutions and we should expect what’s worth for this country the next few years,” she stated.
The draft state budget law is discussed in three reading.
