Reducing budget spending

Parliamentarians together with those invited at the meeting of the Committee on Economic Policy discussed the possibility of reducing this year's budget expenditures to create a kind of emergency fund. This decision was made in connection with the difficult situation around Pridnestrovie, which affects the country's economy.

Industrial production is expected to decline by 14.7%, and exports by 17% as noted by representatives of the Ministry of Economic Development, according to the forecast data provided by the enterprises of the republic, by the end of this year. Deputy Minister of Economic Development Alevtina Slinchenko said that ferrous metallurgy and engineering, where a decrease in production levels of about 30% is expected, and light industry, where a decline of up to 7% is predicted will be In the most vulnerable position. Forecast data was provided by the enterprises themselves. Calculations were made to reduce the revenue side, which, as a result, will lead to the need to reduce budget expenditures based on these figures. The Ministry of Economic Development noted, despite positive indicators in the first quarter of 2022. The Government, represented by the Ministry of Finance, proposes to reduce government spending on trust funds by 384 million rubles. Part of the funds should remain in the reserve of funds.

Deputies of the Economic Policy Committee agree that government spending should be reduced to create a financial cushion, to ensure timely and full fulfillment of the state's social obligations. At the same time, disagreements arose on the issue of prematurely making a decision to reduce the income of the consolidated budget. Parliamentarians consider that it is necessary to focus not only on the forecast indicators submitted by enterprises to the Ministry of Economic Development in these matters, but also on the actual indicators of income in the first half of the year. Thus, Viktor Guzun noted, according to the results of the first six months of this year, the republican budget revenues exceeded the planned ones by 105 million rubles, and local budgets - by 95 million.

The deputies of the Committee on Economic Policy propose so far to reduce only government spending, mainly through development programs (target budget funds), and form a reserve. If there is enough money in the budget following the results of nine months, then they will be directed as planned to fulfill various tasks – within the framework of the Road Fund, the Capital Investment Fund and others. If according to forecasts the republican budget revenues decrease, then the money will be directed to payments under social articles first of all.

The parliamentarians will make the final decision on this issue on Wednesday in the course of the plenary session.

The deputies of the Committee on Economic Policy considered changes to the state target program of preferential lending to citizens of the Pridnestrovian Moldavian Republic, who were participants in the hostilities to protect the PMR and participants in the hostilities in Afghanistan from April 1978 to February 15, 1989, who became disabled of I or II groups of a general disease, labor injury, occupational disease, disease received during military service, visually impaired I or II group. It is planned to expand the circle of persons who can use a preferential loan for disabled persons of group III of a general disease, work injury, occupational disease, disease received during military service, and due to vision, as well as those who become disabled due to injury, concussion, injury or diseases received in the defense of Pridnestrovie and previously not participating in the program for these categories.