Tiraspol, 2 March. /Novosti Pridnestrovya/. The Supreme Council considered the draft law «On the republican budget for 2016”. The chairman of the government, Pavel Prokudin, ministers, law courts representatives, NGO members took part in the session. The basic budget parameters were supposed to pass the first reading. The bill had been submitted to the parliament in December 2015. The joint work of the government and parliamentarians had resulted in 250 amendments increasing revenues and decreasing a budget deficit.
As was noted by the minister of economic development, Dmitry Boltrushko, the submitted forecasting data reflected negative phenomena the Pridnestrovian economy had faced. The past year saw a considerable fall in GDP, foreign trade turnover and tax revenues to republican and local budgets. Thus, 34 of 50 major taxpayers lowered tax payments at an aggregate amount of 466 million roubles. As a result, the Pridnestrovian economy showed a 20% decline.
The risks the country might encounter this year were also taken into consideration. Among them are the risks relating to the signature of foreign trade contracts (first of all, for the supply of the Pridnestrovian electric power to Moldova), changes in Moldova’s fiscal policy, a number of restrictive measures by Ukraine (including the transit of cargoes through Ukraine to Russia) and others.
It was specially emphasised, in the meantime, that under difficult circumstances the government had provided state assistance to Pridnestrovian importers. According to the minister, enterprises may continue receiving this assistance in 2016 as well.
The minister of finance, Irina Molokanova, noted that the budget revenues had decreased by a quarter in 2015 compared to the previous year.
«Unfortunately, by the moment of drafting the budget the concept and forecast of socio-economic development had not been approved, which is why the current tax revenues data and enterprises' plans were taken as a basis,” noted Irina Molokanova.
As a result, it was proposed to approve the revenue side of the consolidated budget at an amount of 2,334 million roubles and the spending at 4,799 million roubles.
According to the submitted data, the republican budget revenues are estimated at 1,478 million, the maximum spending at 3,348 million and the deficit at 55.9%.
According to the minister of finance, a considerable proportion of the budget spending is proposed to allocate for healthcare (14.3%), local budget subsidies (9.5%), defence and public administration spending (6.2% and 5.6%, respectively).
At the same time, as the finance minister noted, the draft budget includes the salary indebtedness to public sector employees for 2015.
After that, MPs proceeded to the consideration of draft law amendments, proposed by both the Supreme Council and the government. In particular, tax revenues plans for customs authorities were reviewed, public administration spending was cut, up to 70% of the income of state-run enterprises are to be allocated to the social stabilising fund. It was also proposed to refuse the second stage of a pay rise level, leaving the statutory minimum salary at the level of January 2016. Besides, the parliament’s majority decided to sequestrate a fee fund of PRTRK [state-run radio and TV company] by 2.1 million roubles. Lawmakers considered about 250 amendments altogether.
Finally, the basic budget parameters were adjusted and the draft budget was approved on first reading.
