Prime Minister Dorin Recean explained the growth of public debt as a result of investments in the country’s development. He expressed this during the presentation of the report on the government’s activity in 2023 before the Parliament. BCS MP Oleg Reidman expressed concern about the increasing cost of servicing the public debt, pointing to the significant increase in the expenses on this item in recent years.
Reidman pointed out that the debt service costs rose to LE 5.3 billion in 2023, while in 2020 they amounted to LE 1.7 billion. This increase, he said, has a serious impact on budget finances. He also emphasized that the share of debt service as a percentage of total borrowing has increased significantly.
Rechan responded by saying that the increase in public debt is due to investments in the country’s development, such as the construction of roads, schools and other public facilities. He said loans are used to finance these projects, which contributes to the growth of the economy. He emphasized that the volume of public debt is decreasing relative to GDP, which is an indicator of the economy’s sustainability.
According to the law on the state budget, the public debt should not exceed 114.5 billion lei by the end of 2023, and 125.5 billion lei by the end of 2024.
