The COVID-19 Crisis: how does the Republic of Moldova finance its budget deficit?
The COVID-19 Crisis: how does the Republic of Moldova finance its budget deficit?

Author(s): Dumitru Pîntea
Subject(s): National Economy, Health and medicine and law, Fiscal Politics / Budgeting
Published by: EXPERT-GRUP Centrul Analitic Independent
Keywords: COVID-19 Crisis; Republic of Moldova; budget deficit;
Summary/Abstract: In addition to the threats related to the population’s health, the crisis generated by the Covid-19 pandemic presents the first economic challenges. Quarantine and social distancing measures have significantly reduced the activity of companies, with the global economic growth forecasts being significantly revised towards a global recession of about 3%. The economy of the Republic of Moldova is no exception as several sectors are already registering a drastic decrease in the sales and revenues because of the impossibility to carry out the usual activity. In addition, the public finances are being put to a severe test - on the one hand they are affected by the reduction in the tax revenues, on the other hand, there is an increase in spending to support the healthcare sector. Also, the Government cannot leave the real economy without support, the expenses for supporting the enterprises and the population will increase considerably.

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