2022 State Budget passes first reading


Parliament today passed the draft 2022 State Budget in first reading with the vote of 57 MPs.
Revenues are estimated at 50.1 billion lei (+9.2%) and expenditure at 65.2 billion lei (13.1%), with a resulting deficit of 15.1 billion lei.

Key expenses include cold season aid and partial subsidies for gas and heating bills. Also, the government plans to increase spending for regional development projects.

The main sources of covering the budget deficit will be foreign funding (budget support loans and funding for specific projects) and domestic resources (issuance of state securities and privatization deals).

Sovereign debt at the end of next year is estimated at 103.3 billion lei, accounting for 40.4% of GDP.

In 2022, economic growth is predicted at 4.5% and annual inflation at 6.9%. Exports are expected to grow by 10.6% and imports by 5.1%, while the average salary is estimated to increase by 10%.

The Com-Soc group, who voted against, criticized the budget in particular for the difference in the pay raises for teachers (+5.6%) and state officials (+7.7%).

Also today, Parliament approved in first reading the draft 2022 tax and customs policy. Among its highlights are the proposals to direct road tax revenues entirely to towns administrative units of first level; to increase the minimum salary from 2,200 to 3,100 lei in the public sector; and restore annual bonuses for public sector employees.