The Round Table

Viktor Guzun, Chairman of the PMR Supreme Council Committee on Economic Policy, Budget and Finance, described the economic situation in Pridnestrovie today. The Head of the relevant committee briefly spoke about the measures taken by the state to stabilize the economy in recent years. The budgetary policy is aimed at curbing the growth of budget expenditures in in Pridnestrovie. Mechanisms are implemented to support the economy through subsidizing interest rates from the budget on loans that are allocated to economic agents. The structure of the PMR budget expenditures is directed towards the growth of expenditures on capital investments and economic development through the Capital Investments Fund.

2020 has become a test of strength for Pridnestrovie. The spread of coronavirus infection has led to decrease in consumer activity and business activity of economic agents. In addition, abnormal weather conditions - drought - inflicted a strong blow on the PMR economy in 2020. As a result, all these factors influenced the fall in GDP. The PMR economy fell by 11% in 2020.

Victor Guzun listed those areas in which Pridnestrovie expects cooperation with the Russian Federation. This is, first of all, the stimulation of foreign trade cooperation between economic agents of the PMR and the Russian Federation. The share of Pridnestrovian exports to the Russian Federation decreased by 19%. These are large numbers for Pridnestrovie. According to Victor Guzun, the development of the PMR will be facilitated by attracting investments in the real sector of the economy. The law on state support for investments has been adopted in Pridnestrovie.

Another important aspect for cooperation with the Russian Federation can be the reconstruction, restoration and development of the irrigation systems of Pridnestrovie. This year, the drought has caused serious losses to the agro-industrial sector. About 100 thousand hectares were affected. The gross harvest of winter wheat amounted to 30% of the average for the last 5 years. The damage suffered by the state exceeds $ 55 million. This is 6.5% of GDP.

2020 brought serious changes to the life of Pridnestrovie. Due to the spread of coronavirus infection, it was necessary to make changes to the expenditures of the republican budget. By the end of 2020 approximately 345 million rubles were allocated from the budget to fight the pandemic - about 12% of the consolidated budget revenues. This money could be used to invest in the economy, to raise pensions.

The Head of the Committee on Economic Policy, Budget and Finance Victor Guzun expressed the hope that the joint efforts of Russian and Pridnestrovian parliamentarians will be able to implement a number of projects. This, in turn, will allow increasing the growth rates of the Pridnestrovian economy, creating additional jobs and increasing the welfare of the citizens of the republic.