Republican budget receives only 64% of projected receipts in six months

07/11/16 20:28

Republican budget receives only 64% of projected receipts in six months

This is what the finance minister, Irina Molokanova, said during a government meeting today

Tiraspol, 11 July. /Novosti Pridnestrovya". The head of the government, Pavel Prokudin, held a briefing session with the leadership of economic and finance ministries. The focus was on the execution of the budget and the country's socio-economic development, the government's press service reports.

Summing up the financial results of the first six months, Irina Molokanova expressed concern over a shortfall in projected receipts. According to her, in six months the budget received 64% of projected receipts, which is 86 million roubles less than in the hard and deficit year of 2015. Both republican and local budgets showed decline in receipts.

According to Irina Molokanova, this is due to the impossibility of executing a number of budget items — the sources of deficit coverage. This particularly refers to the repayment of the Stabilisation Fund's means allocated by state unitary enterprises (GUPs) in 2012. With regard to these sources, the government warned parliamentarians of the impossibility of receiving them, but MPs rejected all objective arguments of the government when considering the budget law. As a result, the revenue target has proved to be overestimated and its real execution is brought into question after only six months.

«When considering the budget law, it was the Stabilisation Fund that balanced revenues and expenditures on social protection items. Now we are facing the situation where we are lacking funds to finance all social protection items," explained the minister.

May wages has been fully paid out to public sector employees, with the payment of June wages currently under way. Of local budgets, only Rybnitsa has failed to cover this item. As for the start of July, Bendery also faced this problem, but it has managed to pay out wages due to borrowings from the road facility fund.

The republican budget has started to partially finance holiday allowances for education workers, with 1.7 million roubles having already been allocated.

The country's foreign economic activities are still in dire straits. According to the minister of economic development, Dmitry Boltrushko, the exports have dropped by 15.3% since 1 January as compared with 2015. The main decline is observed in the export of electric power and iron industry production — by 14.7% and 23.6%, respectively.

The minister also informed the prime minister on the Concept of Budget and Tax Policy for 2017−2019 drafted by the ministry. «The drafting of this document was delayed due to the late approval of the republican and local budgets," clarified Dmitry Boltrushko.

The ministry has also drawn up the Forecast of Socio-economic Development for 2017 Both documents will be presented in more details at the nearest meeting of the government.

Besides, on 8 July the ministry issued The Digest of the Indicators of Financial Transparency of the PMR for 2015. It comprises the basic indicators of the performance of enterprises of various forms of property, information on major tax payers, on financing the state machinery and budget-funded organisations.

«This digest provides information on the financial and business activities of enterprises, financial results. Everything is available for citizens. This digest has been sent out to all public authorities, including to the Supreme Council. This is a good example of the transparent conditions in which our economy operates. The digest provides detailed information responding to many questions," said the minister.

With regard to a middleman company related to Moldova Steel Works (MMZ), he underscored that Tirasmet, for example, had 8-million-rouble losses with absolutely no profits.

 

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