Dodon: Under PAS the Investment Level Is the Lowest in 10 Years

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Under the leadership of Action and Solidarity Party in Moldova, the lowest level of capital investment in the last decade is observed. Igor Dodon, ex-president and honorary chairman of the Socialist Party, wrote about it in social networks, reports “This year, the share of investment in total public expenditures has sharply decreased. If last year they amounted to 2.8%, this year they have decreased by 30% – down to 2% of total public expenditures. Such poor dynamics suggests that this indicator will continue to decline by the end of the year,” said the socialist. In his opinion, the reduction in public investment is caused by both the poor organization of expenditures and the lack of well-publicized external funding. According to him, “out of grants of 2.5 billion lei promised this year, the government managed to attract only 9% or 237 million lei for half a year” and “the gap of 2.3 billion lei resulting from the government’s inability to attract the promised grants will appear in further reduction of capital investments”. “However, the situation with loans is much worse. Let us not forget that this year’s budget had a record-breaking deficit of 19.8 billion lei, of which 18.1 billion lei is to be covered by foreign loans. For half a year, the government managed to attract only 2.8 billion lei in foreign loans, which is only 15% of what is needed. If we take into account that the Government no longer attracts internal loans because of the high interest rates, which increased 3-4 times within half a year, then at the moment we have a budget hole of 17.7 billion lei and there is no chance that it will be covered this year. This forces the government to severely reduce capital investments, which leads us to believe that their share will reduce to 1.5% of total expenditures in the future,” the ex-president said. Point