Evolution of the State Budget and State Debt in 2016
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Automatically translated summary. The full text is available in Romanian.
In October 2016 the Moldovan Government revised the 2016 state budget, cutting revenues and expenditures by MDL 2,065.9 million, and on 25 November the Ministry of Finance proposed a further amendment. This Independent Think Tank “Expert-Grup” document reviews both changes and their effect on the budget deficit.
The October revision reduced revenues by 6.6% and expenditures by 5.5%, leaving the deficit unchanged at MDL 4,182.8 million, or about 3.2% of GDP. It was driven mainly by lower-than-planned budget-support grants and VAT receipts, and aimed to keep the deficit within the limit set in the October 2016 Memorandum with the International Monetary Fund.
The November proposal would raise revenues and expenditures by MDL 328.5 million, of which MDL 173.1 million from VAT and MDL 157 million from customs duties. Spending would go mainly to transfers to the state social insurance budget (MDL 224.3 million) and to local budgets (MDL 103.2 million). Together, the two changes cut revenues and expenditures by MDL 1,737 million (4.9%), chiefly through lower grants (MDL 1,597 million) and VAT (MDL 613.4 million), partly offset by income tax (about MDL 270 million) and foreign trade taxes (MDL 139.4 million).
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