Moldovan state to provide subsidies in advance for improving living, labour standards in rural settlements

Chisinau, 18 October /MOLDPRES/ - The cabinet will earmark subsidies in advance for financing projects on improving the living and labour level in the rural settlements from the national fund for development of agricultural and rural environment, according to a regulation approved by the government today.     

Under the document, the allocation of the money will be made annually, according to the law on the principles of subsidization for the development of agricultural and rural environment, up to five per cent of the fund’s overall value. The subsidies will amount to 1-3 million lei, depending on the investment projects, and will account for 50-80 per cent of the investment.  

The goal of the normative act is to fulfill the provisions of the general objective, “improving of the labour and living standards in the rural environment” of the national strategy of agricultural and rural development (SNDAR) for 2014-2020. At the same time, the draft regulation represents a priority for the cabinet, being included in its action plan for 2019-2020, the Agriculture, Regional Development and Environment Ministry said. Estimations show that benefits amounting to 1.67 million lei will result for one million lei provided for subsidies from the state budget.   

The money is to be used for implementing projects on the development of public infrastructure and services provided to rural residents, creating businesses in non-agricultural sectors and creation of new jobs. The draft normative act is aimed at annually implementing at least 50 projects on the improvement and development of public infrastructure and services provided to rural population, ensuring access to the developed infrastructure and upgraded services for about 250,000 beneficiaries yearly. Also, decision-makers plan to annually create at least 30 new businesses, which will generate over 130 jobs, of which 30 percent meant for women.    

The project’s authors said that, as a result of the regulation’s implementation, the net economic benefits in Moldova’s economy will amount to 87.2 million lei in 2019, respectively, 89.3 million lei in 2020 and 91.5 million lei in 2021.