Financing Social Protection in Moldova in Light of the 2018 Draft Budget
Automatically translated summary. The full text is available in Romanian.
Independent Think Tank “Expert-Grup” analyses how social protection is financed in Moldova, based on the 2018-2020 Medium-Term Budget Framework and the draft 2018 state budget. The note examines spending trends and priorities, covering both social insurance and social assistance, and was prepared under a project on budget transparency.
Social protection spending was MDL 19,351.5 million in 2017 (13.6% of GDP) and is planned at MDL 20,947.0 million in 2018 (13.1% of GDP). About 65% goes to social insurance and 35% to social assistance. The social insurance deficit is growing: transfers to cover it will reach MDL 1,329.4 million in 2018, 32.4% more than in 2017. The 2017 pension reform did not address contribution collection, while ageing, migration and informal employment add pressure.
Social assistance is shrinking as a share of public spending, from 14.8% in 2016 to a projected 12.9% by 2020, even as needs grow. Only 6% of it funds social services, which are critically underfunded. Payments are fragmented and small. The note recommends reviewing payments, developing services coherently and funding care for vulnerable groups through earmarked transfers.
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