The main reason for the increase in Moldova’s budget deficit in 2026 was a faster-than-expected rise in expenditures (up 4.4%) against a backdrop of stagnant revenues (up only 2.8%).
According to the Ministry of Finance, from January through May 2026, state budget revenues totaled more than 30.3 billion lei, while expenditures amounted to nearly 38.0 billion lei.
The situation was exacerbated by a sharp decline in foreign grants amid the current economic conditions in the region. During the same period, the volume of foreign grants received plummeted from 1.77 billion lei (in 2025) to a modest 210 million lei.
Transfers account for the lion’s share of spending. The funds are allocated to local budgets, the Social Insurance Budget (BASS), and health insurance funds (FAOAM). Growth in this category exceeded 1 billion lei compared to the previous year. Social security traditionally accounts for about 26% of all budget funds.
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