budget

The main problem with the 2026 budget is the cost of domestic debt. At the same time, the government expects to maintain the planned deficit so as not to stop investments that may be made next year, according to Logos Press.

“A “responsible investment budget” with a “healthy” deficit was approved by the Moldovan government at an extraordinary meeting on Thursday, December 4,” Logos Press reported.

According to the draft Budget Law for 2026, the national public budget deficit will exceed the current figure and reach a level of 5.7% of GDP, while it is expected to reach 5.04% in the current year, Logos Press reported.

The state’s annual borrowing limits have been lowered, but remain the main tool for raising funds for the budget, including from the public’s money, Logos Press reported.

A threefold increase in any indicator in the banking market can hardly be considered an ordinary event. This also applies to the National Bank’s increase in the countercyclical capital buffer rate for exposures from loans in Moldova from 0.5% to 1.5% of the total value of the exposure to risk. This wording seems complicated to explain, but it is not difficult to understand.

The Moldovan Parliament adopted in the second reading amendments to the Law on State Budget for 2025, increasing its deficit by 304.6 million lei (+1.7%) – up to 18 billion 211 million lei.

The Chisinau Municipal Council approved at its November 28 meeting the payment of funds for teachers’ salaries, Logos Press reported.

The ninth attempt to vote for the capital’s 2025 budget failed again. The draft adjustment of the provisional budget of Chisinau, proposed in connection with the latest changes in the state budget indicators, did not get the necessary number of votes and was rejected on November 25. Despite the fact that it is the end of the year, the document has not yet been approved, and tensions between factions in the municipal council continue to hinder the finalization of the process.

Adjustments to this year’s budget changes have affected the income of first-tier local elected officials, Logos Press reported.

Another, already the ninth attempt to vote for the capital’s 2025 budget, failed due to different views of the municipal council factions on priorities, Logos Press reported.

The sanctions imposed by the United States against two major oil exporters, Rosneft and LUKOIL, have led to a sharp drop in oil prices for Russia’s benchmark Urals oil to $40 per barrel and below, Logos Press reports.

Large-scale tax reforms in Moldova are planned for 2027 to ensure that they are properly prepared, consulted with the business community, and are stable and predictable for entrepreneurs. For 2026, the Ministry of Finance intends to promote less complex and precise, but positively affecting business adjustments. And in the short term – to extend and make permanent the mechanism for deferring income tax payment until dividends are withdrawn, at least for certain categories of business entities.