Budgetary and tax policy and procurement control in the PMR

The Committee on Economic Policy, Budget and Finance continues to work on the Concept of Budget and Tax Policy. The document is designed for three years, from 2024 to 2026. The first year, for which the republican budget is drawn up, the next two are the planning period, when real trends in the socio-economic development of the republic are traced. The priority as before is the development of industry, agriculture, support for entrepreneurs, and information technology. It is in these areas, according to the Supreme Council, that it is necessary to provide state support in the first place.

According to the Chairman of the Supreme Council of the Pridnestrovian Moldavian Republic Alexander Korshunov, the Concept of Budgetary and Tax Policy is a necessary document for the republic, which is designed to regulate the principles of building a budget and the principles of spending the state budget. The parliamentarians together with those invited considered a number of amendments prepared for the second reading of the law-in-draft in the course of the meeting of the Committee.

For example, it is proposed in the medium term to ensure the cost of capital investments at a level of up to 2% of the GDP of the previous financial year, primarily by accumulating financial resources within the budget in the relevant Fund, the main purpose of which will be to make capital investments in infrastructure facilities of the republic.

Social orientation is maintained within the budget policy. The budget policy should ensure financial and social stability in the republic in 2024 and focus on the priority of sectors of the social block. The main priority of budgetary spending, both now and in the future, should remain spending on the social sphere, the social protection system and investment in human capital. The main feature of the formation and execution of the budget should be the transition from spending budgetary funds to managing budgetary results. It is necessary to move on to achieving final results within the approved funding limits from the current practice of spending budgetary funds, the parliamentarians consider.

As for tax policy, it should be aimed at ensuring stable tax conditions for business entities and citizens of the republic as well as improving the quality of tax administration and simplifying it in order to reduce the administrative burden on both taxpayers and government agencies. Work will need to be carried out to clarify the category of individuals who are subject to the obligation to file an income declaration IN the medium term, in the field of tax policy. An audit of tax benefits and deductions will also be carried out in order to optimize existing approaches in taxing personal income. Reduction in the number and scope of benefits will be accompanied by a revision of the current nominal rates for income and unified social tax and bringing them up to the actual level at the same time.

The parliamentarians will consider the concept of budgetary and tax policy in the second reading in the course of one of the next plenary sessions.

The relevant parliamentary Committee on Economic Policy began work on a legislative initiative of the Government. It was proposed to introduce a number of amendments and additions to the law "On Procurement" in order to eliminate problems that make it difficult to involve experts and expert organizations in the implementation of procurement activities by state or municipal customers.

The definition of "expert" includes in the current wording of the law the individuals, including individual entrepreneurs, who have special knowledge, experience, qualifications in the field of science, technology, art or craft. An expert organization may be a legal entity that, on the basis of a contract, carries out activities to study and evaluate the subject of expertise as well as to prepare expert opinions on issues raised by the customer, procurement participant. However, there are limitations to the involvement of experts.

Those who worked for the customer for two years prior to the examination cannot be admitted to the examination. As for organizations, those for which the customer or supplier has the right to dispose of more than 20% of the total number of votes or more than 20% of the contributions or shares of the authorized capital fall under the restrictions.

According to the Government, such requirements significantly complicate the involvement of experts and expert organizations when state or municipal customers determine the contractor for the work.

The deputies discussed in the first reading the introduction of amendments and additions to the law “On the state list of small privatization objects for 2023-2024” in the course of the meeting of the Committee on Economic Policy, Budget and Finance. The project proposes to supplement the state list of small privatization objects with 14 objects that are under the jurisdiction of the Ministry of Agriculture and Natural Resources. We are talking about irrigation and pumping stations in Slobodzeya district.