OREANDA-NEWS.  June 20, 2012. The revenue is planned to be cut by 334,2 mln. leis (1,6%) approximately from 21 bln. 367,3 mln. leis to21 bln. 033,08 mln. leis.

The expenditures are planned to be reduced by 425,2 mln. leis, (1,9%) from 22 bln. 364,3 mln. leis to 21 bln. 939,08 mln. leis. The deficit of the state budget of Moldova is expected to be reduced by 91 mln. leis from 997 mln. to 906 mln. leis. According to Finance Minister Veaceslav Negruta, within the last two years measures assumed to consolidate the fiscal policy have led to narrowing of the budget deficit.

Recurrent expenditures were cut, namely on goods and services to enlarge social aid to vulnerable groups and public investment amounts were increased. The budget deficit was initially going to be reduced to the level below 1% in 2012. However, within first months of 2012 the revenue of the state budget was below the target, which, in part, was determined by the slowdown of the national economy.

Besides, a delay of the external aid tranche is threatening execution of the budget this year, The Finance Minister says. A set of economic measures and fiscal policies has been developed to improve the situation and provide the balance between the revenue and expenditures in order to maintain the total deficit of the state budget at 1,3% of GDP.