The Moldovan Parliament has approved amendments to the law on the state budget for 2024 in the first reading. These amendments will result in a reduction in revenues by 801.5 million lei, bringing the total volume down to 65.83 billion lei. On the other hand, expenditures will increase by 386.3 million lei, reaching 82.6 billion lei. As a result, the budget deficit will increase by 1.18 billion lei, exceeding 16.77 billion lei, which is equivalent to 5.06% of the GDP. The main areas of expenditure reduction will be taxes and fees, while significant increases are planned for education, social protection, and public order and national security.
These amendments are based on revised macroeconomic forecasts and the execution of the state budget in the first five months of the year. The Finance Ministry proposes reallocating saved funds to priority areas and increasing the budget deficit. Additionally, the Parliament has adopted amendments to the state social insurance budget for this year, which will adjust it to revised macroeconomic indicators. These changes include increases in spending on family and child protection and supporting vulnerable populations to reduce energy vulnerability. Opposition MPs criticized the authorities’ budgetary policy, highlighting the unaddressed needs and problems of citizens, such as increasing poverty and high utility costs.
