President signs law on 2016 budget

04/28/16 20:25

President signs law on 2016 budget

The president, however, has vetoed some articles of the law

Tiraspol, 28 April. /Novosti Pridnestrovya/. President Yevgeny Shevchuk has signed the Law of the PMR «On republican budget for 2016». Some articles of the law, however, has been vetoed by the head of state. A corresponding decree and the reasons for rejection will be soon submitted to the Supreme Council.

The PMR's law «On republican budget for 2016» has been drawn out by the government, taking account of projected indicators, validity and implications of making decisions. The Supreme Council adopted the law in the ultimate reading on 13 April 2016. One of budget priorities remains the maintenance of social support measures and social security for citizens. Most of budget funds will be allocated for social benefits — salaries, pensions and allowances.

According to the law passed by the Supreme Council, in 2016 the republican budget revenues are estimated at 2.6 billion roubles, the expenditures at about 3.2 billion roubles, the deficit at approximately 530 million roubles, or 16.6% of the revenues.

It should be noted that 2015 showed a decline in business activities both in Pridnestrovie and in neighbouring countries and, consequently, a considerable fall in budget revenues The republican budget, including the budget of the State Fund of Social Security, received 3.6 billion roubles, which is 746.8 million roubles (17%) less as compared to the same period in 2014. The actual expenditures of budgets at all levels and extra-budgetary funds in 2015 amounted to 5.2 billion roubles, exceeding the country's revenues by 1.6 billion roubles. Thus, only 68% of actual budget expenditures during this period were covered by revenues.

According to the government, a decline in tax revenues for budgets at all levels was caused by the impact of negative factors on the country's economy. Among them are the turbulence of foreign economic situation, cargo transportation problems, a lack of its own raw materials base and material resources, a decrease in purchasing power for Pridnestrovian products abroad, a considerable decline in demand for domestic goods in foreign markets, low competitive power in market conditions with permanent governmental assistance, including by providing reduced prices for utilities.

The economic processes of 2016 are in fact identical to those in 2015 and demonstrate the deterioration of the situation in the country. This is testified by basic macroeconomic indicators and the results of budget performance in the 1st quarter of 2016 which suggest that the decline in tax payments which began in the second half of 2014 will continue into 2016. Thus, in the first three months of the current year aggregate tax revenues decreased by 76 million roubles as compared to the same period in 2015, which back then saw a sharp drop in budget revenues against 2014.

It is recalled that initially the government's draft budget submitted to the Supreme Council provided for a 2.2 billion roubles deficit. In the budget law approved by the parliament the maximum amount of deficit has been reduced to more than 1.3 billion roubles. At the same time, according to lawmakers, amendments made to the budget law will secure the deficit on social protection items.

In particular, the Supreme Council has increased the amount of republican budget revenues by nearly 1.1 billion roubles. At the same time, an analysis of the economic situation in the country in 2015 and in the 1st quarter of 2016 has shown that part of projected budget revenues is groundless, which endangers the execution of approved parameters of the budget revenues, and consequently projected spending on social payments in full volume.

In this connection, the president has imposed a veto on some articles of the law «On republican budget for 2016». According to the head of state, a number of amendments made by MPs are groundless in terms of economic expediency, do not meet the draft law's concept, and violate lawmaking procedures established by the Constitution and the current legislation.

Today, the president has signed the Law of the Pridnestrovian Moldavian Republic «On budget of the Unified State Fund of Social Insurance of the PMR for 2016». According to the document, the fund's revenues are estimated at about 1.7 billion roubles, its expenditures at over 2.6 billion roubles and its deficit at about 930 million roubles.


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