Moldova’s low absorption of external funds remains a key challenge
EUR/MDL - 20.07 0.2099
USD/MDL - 17.35 0.3437
VMS_91 - 3.03%
VMS_364 - 9.54%
BONDS_2Y - 7.40%
GOLD - 4,319.53 0.56%
EURUSD - 1.16 0%
BRENT - 107.14 8.65%
SP500 - 737.05 0.29%
SILVER - 67.89 0.31%
GAS - 2.94 6.14%

The low capacity to absorb external funds is a chronic problem

The low capacity of government agencies to utilize budget allocations and external funds remains a persistent problem in public administration. This was discussed at a joint meeting of the Committee on Economy, Budget, and Finance and the Committee on Public Finance Oversight, where the progress of the state budget’s implementation was reviewed. Lawmakers are wondering whether the authorities will be able to absorb future large-scale EU funds.
Svetlana Rudenco Reading time: 2 minutes
Text size
Link copied
Dina Roshka

Dina Roshka

Hundreds of millions in unspent funds

MP Adrian Lebedinsky, chairman of the Public Finance Oversight Committee, noted that many institutions are experiencing significant delays in spending funds, amounting to hundreds of millions of lei.

“In 2025, we faced an inability to disburse funds in various sectors. We’re talking about the economy (620 million lei), education (418 million lei), and social protection (356 million lei). What’s the problem? Why are we unable to utilize them? Especially since new funds are expected from development partners. Will we be able to utilize them?” the MP asked.

The problem has persisted for many years

Dina Rosca, Secretary General of the Ministry of Finance, acknowledged that the low absorption rate of funds—both for externally funded projects and for budget-funded projects—is an ongoing problem:

“This problem has persisted for many years—the issue concerns the capacity or ability to absorb allocations, especially within the framework of investment projects funded from external sources and investment projects funded from the budget. The situation remained the same throughout 2025. Work is ongoing. We are in constant communication with government agencies. We have already made a number of amendments to Law No. 181 (the Law on Public Finance and Budgetary and Fiscal Responsibility— ed. Logos Press) to increase the accountability of agency heads for investment projects and projects financed from external sources, based on the commitments they have made.”

A stricter monitoring mechanism

The executive branch has decided to implement a stricter monitoring mechanism. Under the Prime Minister’s leadership, weekly budget execution reviews are conducted at the State Chancellery.

“Every week, each minister will be required to report on which projects and commitments they have undertaken, the status of any project delays, the obstacles involved, and what measures we are taking regarding the project implementation units. To a large extent, every investment project and every project financed from external sources has its own implementation unit. If they fail to fulfill their established duties, tasks, or objectives, the situation will be clarified with each unit,” Roshka stated.

It is worth noting that, according to data presented at the meeting, in 2025, 1.8 billion lei were allocated to servicing the external public debt—paying interest and fees—while 7.9 billion lei were used to repay the principal. In dollar terms, $102.5 million was spent on servicing the external debt, and $455.8 million on repaying the principal.


Follow our updates


Реклама недоступна
Related*
More from author*

We always appreciate your feedback!

Latest news
Popular now*
Must Read*