The first reading

The main issue on the plenary agenda was the draft republican budget for next year. The document was presented to the deputies by First Deputy Prime Minister Tatyana Kirova.

At the beginning of her speech, she noted that the draft budget 2020 is based on the recent positive dynamics in tax and non-tax revenues. However, like its predecessors, next year’s budget is in short supply, Government spending will be more than its revenues. The main sources of the next year’s budget revenues will be the corporate income tax, the unified social tax, income tax, as well as excise taxes, customs duties and deductions from foreign economic activity of economic entities. It is planned that state revenues will amount to 4.6 billion rubles next year and grow by about 137 million rubles.

Expenditures planned for 2020 with an increase of 204 million rubles characterize the desire of all public authorities to formulate a development budget in the future. In the meantime, as in previous years, he will be socially oriented. This means that the main task of all authorities, both republican and local, will be the fulfillment of social obligations undertaken by the state for the timely and full payment of wages to public sector employees, social benefits, and the provision of financing for socially protected articles of the state treasury. As for the increase in wages, the Government intends to increase the limits on their financing for employees of the healthcare industry, trolleybus departments, and employees of correctional institutions next year. The vice prime minister explained the need for this by a shortage of personnel in these areas.

The Deputy Prime Minister devoted most of the speech to the expenditure side of the republican budget for the next year. Compared to this year, a million rubles will increase food costs for children with special needs. 6 million rubles more will be spent on the purchase of medicines. Thanks to this, next year it is planned to make free tests for pregnant women and drugs for obstetric care.

An additional 19 million rubles is planned for the implementation of four state targeted programs in medicine, compared with the expenses of 2019. Plus, 9 million rubles will receive a state program to provide housing for orphans and children without parental care. This year, 48 people received a roof over their heads under this program. It is estimated that by the end of the year their number will grow to 60 children. It is planned to reserve more than 14 million rubles for the payment of compensation for “burnt out” Soviet deposits.

Next year, they will continue to carry out repairs and reconstruction of the social infrastructure of the republic with funds from the Capital Investment Fund. They plan to purchase medical equipment worth about 50 million rubles. This year from 86 to 144 million rubles in the future, it is planned to increase the amount of funds from the inter-tariff difference between economically justified tariffs and those at which utilities are provided to the population. They will be used by enterprises in the energy sector to maintain networks and equipment in good condition, ensuring reliable supplies to consumers of energy resources.

It is planned that funding from the Road Fund will increase. 20 million rubles in addition to directly maintaining the roads will be spent on the repair of territories adjacent to schools and kindergartens, another 20 million rubles - sidewalks. It is planned to provide 8.6 million rubles in the 2020 budget for the implementation of the state targeted program for the execution of voters' orders. The Entrepreneurship Development Fund will amount to 27 million rubles. This money will be directed to the development of tourism, a business school, “Buy Pridnestrovian!” project, and to grants to beginning entrepreneurs. The practice of subsidizing milk producers, subsidizing the acquisition of cattle heifers and laying stone fruit gardens will continue. Next year, a subsidy of 1.7 million rubles is also envisaged for the implementation of the Capital program.

The questions asked by the deputies dealt mainly with the prospects for improving the living standards of citizens, inflation indicators, the possibility of equalizing the wage bill calculated for salary payments and fines, and potential external risks.

Then the parliamentarians began to discuss amendments to the draft main financial document of the next year. Topics for discussion with Government representatives were financing of PSU research laboratories, subsidizing local budgets.

Despite the proposal made in the hall not to adopt the law-in-draft “On the republican budget for 2020”, the majority of deputies, with three votes “against”, adopted the law-in-draft in the first reading. The second and third readings are scheduled for December 11 and 18.