Tiraspol, July 21. /Novosti Pridnestrovya/. In May, the Supreme Council adopted in the first reading amendments to the law on the republican budget-2020, necessary for maintaining a balance of expenditures and revenues of the State Treasury, which will allow the state to meet all its social obligations in the current circumstances.
Funds for financing social obligations were proposed to be redistributed from the Capital Investment Fund, and to be directed to cover shortfalls by reducing or suspending financing of some targeted programs of sanatorium treatment and other items.
The parliamentary press service reports that the Committee of the Supreme Council on Economic Policy was working on a package of amendments together with ministries, departments and during meetings with the President of the PMR Vadim Krasnoselsky for the second reading.
“A package has been developed, which, in case there are no external interventions or additional shocks, will enable the state to meet its social obligations, first of all, as well as obligations to those infrastructure projects that are being implemented in the republic. This concerns roads` repair and maintenance, continuation of work on the objects of the capital investment program and on other projects that has already begun,” Oleg Vasilatiy, Chairman of the Economic Policy, Budget and Finance Committee said.
The amendments have been discussed at an online meeting of the Committee today. The item on the reduction of funding for the development of land reclamation program sparked the most controversy. The Deputies were opposed to this amendment to the budget.
“Initially, the concept of the law provided for the reduction and redistribution of expenses. But one of the conceptual issues was compulsory implementation of those decisions in the area of development of the reclamation complex that had been made earlier. The Government decided to reduce spending limits in this area. We did not agree with this, so now it has been decided that funding of expenses for land reclamation development remained at the previously adopted level. We are talking about 16 million rubles according to the results of 2020,” Oleg Vasilatiy said.
According to him, it was decided to continue funding the program for the purchase of heifers at the level of last year. This year it is planned to increase the number of cattle in the republic by 1 thousand heads.
The rest of the expenditures of the republican budget will be reduced. Oleg Vasilatiy noted that that was a forced decision and that there were no other options to ensure fiscal balance.
“Revenue base is decreasing due to the decline in exports. There is no additional income due to quarantine measures, so we have to redistribute funds. We are cutting the capital investment program by 70 million rubles, the program for the development of tourism and the development of entrepreneurship is also being cut, while the program for supporting young families is being suspended. Revenues from the Road Fund are redistributed to cover the budget shortfalls, the environmental fund and all trust funds,” the Chairman of Economic Policy Committee explained.
Tomorrow, on July 22, the bill is to be considered at the plenary meeting of the Supreme Soviet in the second reading.
