Moldova approves 2025 Budget fix: More pay for teachers, utility help
The draft law on the State Budget Rectification for 2025 allocates increased funding for teachers' salaries, social assistance, and utility bill compensations.
Radu Marian, Chairman of the Parliament's Committee for Economy, Budget, and Finance, stated on the Moldova 1 show ÎN CONTEXT that the differences between the spring and year-end budget rectifications are due to a shift in focus from economic growth and investments to securing funds for urgent social commitments.
"The spring budget rectification focused more on economic growth and investments. But, at the end of the year, after the elections, there's only one month left, and we must ensure funds are available to cover compensation commitments. We allocated 460 million lei for heating compensations for November and an additional 200 million lei for electricity. Compared to the beginning of 2025, budget revenues have increased by four billion lei. It was important to mention that. And, of course, these reallocations include increases for teachers' salaries—we had a salary increase of up to 15% for teaching staff at the beginning of the year," explained Radu Marian on Moldova 1.
The allocated money also covers the salaries of teachers in Chișinău, and in this context, Radu Marian accuses the capital’s Mayor, Ion Ceban, of "manipulating administrative problems for electoral purposes."
"We are witnessing a situation where the Mayor is using political actions to excuse his lack of capacity to adopt a budget and resolve the city's problems. Like any politician who fails to solve their problems, he looks for culprits where there are none. In this rectification, we allocated over 170 million lei for the salaries of teaching staff in Chișinău. Following the adoption of this rectification, the Mayor can solve the problem with a simple order, without needing all this scandal and 'circus.' Moreover, just last year, after a similar scandal about a lack of budget money, he was left with a balance of 60 million lei at the end of the year. Now, he doesn't have an approved budget, isn't paying heating compensations, or salaries for personal assistants. It is regrettable to use and frighten teachers for political reasons. We did what was necessary," the MP emphasized.
Regarding the mechanism for capping compensations, the Chairman of the relevant Parliamentary Committee said it would be based on recent increases in the population's income.
"In Parliament, we set a certain budget for compensation. The decision on how this compensation is allocated is established by Government Decision. That's how we set it in the law last year as well. When these ceilings are established, let's look at last year—we saw very few people received the maximum ceiling. We had an increase in income: the minimum wage increased by over 10%, the average wage by 20%, and the average pension increased by 10% in April. (...) It is essential to use resources rationally, and we must calculate a reasonable budget and, when we see that certain savings can be made, reallocate them elsewhere," Marian argued.
Radu Marian anticipates a revenue increase and the continuation of investment programs for the 2026 budget, but insists on efficient economic prioritization.
"Obviously, there will be an increase in revenues; we've seen certain increases in collections, and investment programs like '373' will be continued, along with the income tax exemption for smaller companies that reinvest profits. We see momentum, and we must continue this. But, at the same time, we must use resources more rationally. This means we will look at programs that have not been absorbed or utilized and will have to make some expenditure corrections. Economic growth also means a more rational use of resources and prioritization in the economy," the MP said.
The same source underlined that the prospects for economic growth in 2026 are linked to internal and external factors.
"We see the invigoration of industry and service exports, which is encouraging. Two to three percent—that’s the growth corridor we expect in 2025. By 2026, it depends on how well we manage to absorb the European Growth Programme. It also depends on external factors, such as whether a just and correct peace agreement for Ukraine is reached. Obviously, this will be a stimulus for us and our investors," concluded Radu Marian on the public television channel.
The Parliament adopted the State Budget Rectification Bill for 2025 in the second reading. Eight amendments were registered, providing for supplementary expenditures of 714 million lei and reallocations of approximately 9.3 billion lei. Following the proposed changes in the bill for 2025, State Budget revenues were set at 75.8 billion lei. Expenditures are estimated at 94 billion lei, and the budget deficit will reach 18.211 billion lei.
The Energy Vulnerability Fund is increased by 706.6 million lei to help low-income families. Approximately 463.5 million lei will be allocated for heating compensations, and 232 million lei for electricity.
Over one billion lei is directed to cover salary needs. Local budgets receive an additional 914 million lei so schools, kindergartens, and local services can function smoothly. Another 361.4 million lei will be allocated for social assistance.
Translation by Iurie Tataru
