OREANDA-NEWS. July 02, 2014. At their extraordinary sitting in Saturday, the Cabinet ministers approved amendments to the law on 2014 state budget in line with which the revenue of the state budget is to be raised MDL 940.3 million (+3.6%) from MDL 26 billion 203.8 million from MDL 27 billion 144.1 million; the budgetary expenses are to be increased by MDL 1 billion 070.9 million (+3.7%) from MDL 28 billion 606.8 million to MDL 29 billion 677.7 million, the budget deficit growing by MDL 130.7 million (+5.4%) from MDL 2 billion 403 million to MDL 2 billion 533.7 million.

Moldova’s Finance Minister Anatol Arapu explained the adjustment of the 2014 budget by the necessity to bring the budget indicators into compliance with the changed macro-economic situation, since the government identified sources to raise allowances to retirees, salaries to public servants and allocations to the state social insurance fund as well as it attached priorities to expenditure programs and included them into the updated assessment of the resource framework.

In particular, the 2014 principal revenue of the state budget is to decrease by MDL 898,1 million to MDL 24 billion 221.3 million, the incomes from special funds declining by MDL 43.7 million to MDL 741.8 million. According to the Finance Ministry, the assessment of the principal revenue show the decrease in some planned incomes by MDL 367.2 million and the increase in others by MDL 1 billion 476.1 million. In particular, there have been the decreases in the planned incomes from the beer excise (due to the contracted consumption), from the car excise (due to their contracted import) and from cigarette excise (due to their contracted consumption and the unfavourable decision by CC) by a total of MDL 247.7 million.

Besides, the revision of the pace of the import growth and the amendments to the Taxation Code entailed a shortfall of MDL 100 million as VAT on import; the budget received MDL 19.5 million less as road tollage since the incomes from the issuance of international transportation certificates were allotted to maintain the National Motor Vehicle Agency. At the same time, some incomes were higher than expected. In particular, the incomes from fees on some licenses exceeded the target by MDL 780.3 million; the incomes from VAT on goods made in Moldova increased MDL 206.9 billion thanks to a growth in domestic consumption and enhanced tax administration. Fines and penalties brought extra MDL 180 million to the budget; the net profit NBM gained in 2013 replenished the state budget by MDL 103.6 million. Due to the devaluation of the national currency, customs duties and consular fees increased MDL 44.4 million and MDL 15.2 million respectively.

Grant funds to support the budget are expected to grow MDL 732 million due to swings in foreign currency exchange rates and revised deadlines for the tranche disbursement. The budget funds aimed for the VAT recovery will be increased MDL 260.8 million, the excise recovery funds shrinking MDL 50 million. In total, budget expenditures are to grow MDL 1 billion 070.9 million to MDL 29 billion 677.7 million, the principal ones increasing MDL 898.1 million to MDL 24 billion 907.6 million.

The biggest extra expenses include the increase in salaries to public servants and other related costs by MDL 382.2 million, including MDL 75.3 million for institutions funded from the state budget and MDL 306.9 million for institutions funded from the local budgets. The government has budgeted MDL 159.7 million to pay annual bonuses to teachers in August 2014; MDL 154.1 million to raise salaries to teachers by 20% starting September 1, etc.