Moldova's budget deficit hits a record high, 16% of the GDP
By the beginning of October the deficit of the public budget constituted about 2.8 billion lei ($252.2 million), the social insurance budget - 700 million and the medical budget - 250 million, Minister of Finance Veaceslav Neguta unveiled such data.
He said that the national budget revenues for nine months constituted 16.6 billion lei that is 47.6% less against the target. The annual target of expenditures was executed by 55% and accounted for 19.4 billion lei.
He explained the complicated situation by the fact that despite the legislation the previous leadership of the republic took a number of decisions and resolutions, which envisage the increase of the expenditures without the budget coverage.
"The result of these decisions constituted 2.8 billion lei. The situation grew worse, as, on the one hand, the revenues are below the target and the budget liabilities were artificially overestimated without coverage" the minister explained.
In his words, taking into consideration the budget liabilities, which cannot be covered, the budget deficit will constitute 8.5 billion lei or 16% of the GDP. Alongside with this, the minister remarked that the budget deficit may be reduced to 12.5%.
In the situation, when the budget revenues constitute a half of the annual target we take efforts for collecting the liabilities to the state budget. The matter is of collecting dividends from state enterprises and accumulating proceeds from the activities of joint stock companies, where the state has the majority of shares", Neguta said.
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