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of the Pridnestrovian Moldavian Republic

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The work on the balance of the republican budget is coming to an end


The global economic crisis, including the coronavirus pandemic, has had a detrimental effect on the economy of Pridnestrovie. The republican budget is losing hundreds of millions of rubles of planned income. The budget law did not include additional expenses for eliminating the consequences of drought, frost and floods, as well as for combating the coronavirus. Expenses exceed incomes, and payments of pensions, various benefits and salaries to public sector employees could be under threat. The work of the deputies in allocating resources, saving costs and searching for sources allowed balancing the budget so that pensions and salaries were paid on time. In April, parliamentary committees analyzed the expenditure side of the law on the republican budget and the budget of the unified social insurance fund and proposed measures to redistribute income and reduce part of expenses. In the first reading, the law-in-draft was adopted on May 27. Funds for financing social obligations were proposed to be redistributed from the Capital Investment Fund, as well as to be directed to cover the deficit by reducing or suspending financing of some targeted programs of sanatorium treatment and other items.

The Committee on Economic Policy by the second reading was working on a package of amendments together with ministries, departments and in the course of the meetings with the President Vadim Krasnoselsky.

Today, the amendments were discussed in the course of online meeting of the Committee on Economic Policy. Deputies and representatives of the Government discussed amendments for each direction and for each item of expenditure of the republican budget.

Most of the controversy was caused by the point according to which it was proposed to reduce funding for the land reclamation development program. The situation in agriculture that arose this year - a snowless winter and drought - showed that without irrigation there would be no harvest. The MPs opposed this amendment to the budget.

The Head of the relevant Committee noted that a decision had been made to continue financing the program for the purchase of heifers at the level of last year. This year it is planned to increase the number of cattle in the republic by 1 thousand heads.

The rest of the expenditures of the republican budget will be reduced. According to Oleg Vasilaty, this is a forced decision, the republic has no other options to ensure a balanced budget.

On July 22, the Supreme Council will consider the amendments and adopt the law-in-draft in the second reading in the course of the plenary session.