Local anti-crisis measures

The story of the 70% payment of salaries and pensions began in February this year with the establishment under the Government of the State Commission for determination of funding the main directions of expenditure budgets of different levels. The debt of the state to state employees is increasing, and social tensions grows with it. In these circumstances, approach to the issue of budget spending is necessary to be careful and rational, clearly setting priorities, said the chairman of the Committee for Economic Policy, Budget and Finance Oleg Vasilaty. He proposed to reduce the amount of funding of the so-called other items of expenditure. Budget Law allowed them to allocate up to 10 per cent of the income statement for 2015 in the financing of the costs of socially protected items. The deputy considers necessary limited to three per cent, and the released amount to redirect the social sector.

The other initiative was unconditionally supported by colleagues on the committee while facing current socio-economic crisis. Alexander Korshunov designed it at the request of SPAPPa. As a measure of support for the industrial sector, he proposed to suspend for the 2015-2016 years of the rule of law "On Tax on income of organizations", which obliges the company in case of damages to recalculate the tax base for income tax with the five per cent profitability. This measure is necessary to preserve the productive capital of the Republic and to preserve jobs, says author of the law-in-draft. The justification for it refers to weighting of the tax burden much higher than recommended for emerging markets indices (34% instead of 25%). The tax burden is even more noticeable in industry - about 45%. It is not necessary to expect development in such circumstances. Compounding the situation is the situation on the domestic and foreign markets, associated with the devaluation of foreign currencies, the general economic slowdown, and purchasing power of the population decrease. Pridnestrovian producers are cutting production volumes, which affects its cost. The decline in production was recorded in 42 companies, representing 43.8% of the total.

Alexander Korshunov offers not to use the so-called tax losses regarding organizations whose revenue more than 70% of the sales revenues from sales of own production.

Despite the absence of an opinion of the government, the initiative on amendments to the Law "On Tax on income of organizations" is recommended for adoption in the first reading.

Parliamentarians and government discussed a law-in-draft to supplement the law "On the Central Bank of PMR", which is designed to improve the procedure of forced liquidation of credit institutions. The powers of the liquidator proposed to assign to the special committee formed by the Pridnestrovian Republican Bank. Today, these functions are performed by the relevant authority in the state administration. But the specific of banking requires the participation of relevant experts. Members of the Committee on Economy considered reasonable arguments, supported the idea and will recommend to the Plenary adoption of a law-in-draft in two readings.