Moldova prioritises social spending in austere 2024 budget
The 2024 budget for Moldova, adopted by Parliament on Thursday, has sparked contrasting opinions. While officials emphasise its social focus and modest growth projections, others criticise its austerity measures and potential impact on development.
The budget prioritises social spending, with projected revenues of over 66.6 billion lei (an increase of 1.3% from 2023) and expenditures reaching 82.2 billion lei, resulting in a deficit of 15.5 billion lei. This social focus means allocating resources towards supporting families and pensioners, while also earmarking funds for investments and business development.
However, the Coalition for Unity and Welfare (CUB) party criticises the budget as "a subsistence budget, a crisis budget with a social focus and modest growth below the level of recovery that the economy needs." They point to the 32% decline in foreign investment as evidence of waning international confidence in the government and warn that the social focus could hinder infrastructure and economic development.
Meanwhile, the head of the Parliamentary Budget and Finance Committee, Radu Marian, dismisses these claims as "false narratives" and highlights the positive aspects of the budget. He emphasises the 4.6% reduction in the budget deficit compared to 2023, the external debt remaining below 35% (considered a reasonable level), and the significant increase in grant funding in recent years (nearly 9 billion lei in two and a half years).
Overall, the 2024 budget reflects a balancing act between social needs and economic considerations. While some may disagree with its priorities, the government maintains its commitment to supporting vulnerable groups and driving economic growth.
Translation by Iurie Tataru
