Government approves 2026 state budget revision: Funds allocated for compensation, completion of local infrastructure projects, one-off payments for public sector and road fund

The Government has approved amendments to the State Budget Law for 2026. The changes are based on updated estimates regarding revenue developments and the additional funding needs of certain policy measures.

“We need to make certain changes to the budget, including to assume the additional costs and obligations towards the people: first and foremost, to provide compensation during the cold season, but also to make the one-time payment to teachers, police officers and other public sector employees. We will also increase the Road Fund. At the same time, we have proposed reducing certain expenditures. From a budgetary standpoint, things look complicated—the budget deficit will increase to 23 billion lei, or 5.95% of GDP. Our target must be to bring the deficit down to 3% of GDP. We must be very demanding and disciplined when adopting next year’s budget, so that we have a more balanced budget and do not end up with such a large deficit,” said Prime Minister Tofan.

One of the main measures envisaged is the provision of exceptional one-time payments to certain categories of public sector employees. For this purpose, 560 million lei will be allocated. The payments will be granted to individuals whose average monthly salary does not exceed 20,000 lei. The amounts will be 4,000, 3,000 or 2,000 lei, depending on the personnel category.

Transfers to the State Social Insurance Budget will be increased by 1.6 billion lei, of which 550 million lei will be used to provide energy compensation in the form of cash payments.

Financial allocations are also planned for infrastructure development in rural communities. The National Regional and Local Development Fund will be increased by 1 billion lei to complete local infrastructure projects, while the Road Fund will receive an additional 300 million lei.

An additional 651.7 million lei will be allocated to cover salary-related needs. The funds will be used for personnel expenses incurred by institutions financed from the state budget and by educational institutions subordinated to local public authorities, and will subsequently be distributed by the Government.

At the same time, expenditures for projects financed from external sources are proposed to be reduced by approximately 959.8 million lei, based on estimates of the disbursement of financial resources by development partners and the utilization of disbursed funds.

On the revenue side, receipts from value-added tax will increase by 600 million lei, income tax receipts by 220 million lei, and excise duties on products manufactured in the Republic of Moldova by 134.7 million lei. At the same time, receipts from excise duties on imported goods will be revised downward by 122.1 million lei, customs duties by 170 million lei, and grants by 837 million lei.

Thus, state budget revenues will amount to 80.27 billion lei, expenditures will total 103.35 billion lei, and the budget deficit will amount to 23.07 billion lei, or 5.95% of GDP.