Tiraspol, 31 January. /Novosti Pridnestrovya/. Last week the minister of finance, Irina Molokanova, visited as part of the governmental delegation Moscow where she held meetings with Russia's deputy finance minister, Leonid Gorin, and the director of the department of inerbudgetary relations, Larisa Yeroshkina.
The main topic of discussion was the country's current economic situation, as well as issues related to the need to reform Pridnestrovie's fiscal and budgetary sectors, the press service of the Ministry of Finance of the PMR reports.
According to statistics, the tax burden on business in the republic is 35% of GDP. The number of people employed in the economy is 106.7 people per 100 pensioners. Of 134,486 employees, 48% work in the public sector.
It was noted during the meetings that the Pridnestrovian budget is socially oriented with most of its spending being allocated for social payments: 29% of GDP accounts for social benefits and 19% of GDP for public sector salaries.
The total expenditures of the consolidated budget and the budget of the Unitary Social Security State Fund of the PMR amount to 57.5% of GDP and 10% of GDP account for the budget deficit ($139 million).
«These economic indicators are showing the current state of the economy. To increase budget revenues by increasing the tax burden is impossible as high taxes may lead to cutbacks in the activities of Pridnestrovian economic entities. Spending cuts will have a negative impact on the income of the population as the country's budget is socially oriented and most of its expenditures account for social security. To this effect, Pridnestrovie is planning to conduct reforms in both fiscal and budgetary sectors," reads the finance ministry's report.
Members of the Pridnestrovian delegation informed representatives of Russia's finance ministry that the government had established working groups to reform fiscal and budgetary legislation, as well as balance the 2017 republican budget.
As the conduct of reforms requires time, the Pridnestrovian government requested its Russian counterpart to grant a long-term $130-million loan, as well as asked for methodological and expert assistance in conducting those reforms.
It was decided following the Moscow meetings that the Russian government would consider granting a long-term loan to Pridnestrovie. Before making a final decision, they need to study and analyse the PMR's budgetary legislation, norms and regulations.
