Head of the International Monetary Fund (IMF) Mission in Chisinau, Thomas Richardson, says that wage increase in public sector might provoke pressures for the public budget, while the Minister of Economy and Commerce, Igor Dodon, suggests that wage increase is imperative at present.

"I understand that salaries are low. My wife works as a teacher in a public school and will not forget me for actions that would lead to salary reductions. But I think it is very important that the number of employees is also rationalized as well as their work", Thomas Richardson stated in a Thursday press conference.

The IMF official estimated at the end of an evaluation visit to Moldova that the salary increase, along with the fiscal amnesty and lowering of income taxes might have a short-term negative impact on revenues accumulation.

In reply, Minister of Economy and Commerce, Igor Dodon said that it is necessary to increase salaries. "My mother is also a teacher. And her salary is less than she deserves. There will be salary increases", said Dodon. He estimated that it is early to specify how much the salaries will increase in the public sector.

"We think that the eventual non-collection of revenues under certain categories of income might be compensated by the increases under other categories", added Dodon.

Despite these reserves, the IMF mission estimated that the state budget was accomplished in accordance with the agreements in the first quarter, and the perspectives "seem to be in accordance with the provisions of the cooperation memorandum between the IMF and the Republic of Moldova".

An IMF mission was in Chisinau during April 25-May 8, in order to evaluate the performances of the Government and the National Bank in what regards the implementation of the commitments under the program with the IMF. The mission developed a new memorandum draft for 2007. // BASA-Press


Publication date: 10 May 2007   

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