Page 123 - SE Outlook Regions 2022

income convergence with European peers,” the IMF’s board said in the
statement announcing the ECF/EFF.

The IMF also transferred $236mn to the accounts of the National Bank
of Moldova in 2020, as part of the general allocation of Special Drawing
Rights (SDRs) equivalent to $650bn (about SDR456bn) approved by
the board of governors of the IMF on August 2, to boost global liquidity.

In June 2021, the European Commission also announced an Economic
Recovery Plan for Moldova, which will mobilise up to €600mn in
macro-financial assistance (MFA), grants and investments, supported
by blending and financial guarantees. The EC’s plan builds on five
pillars: public finance management and economic governance;
competitive economy, trade and SMEs; infrastructure; education and
employability; and, the rule of law and justice reform.

At the end of October, Moldova received a €60mn grant from the
European Union to help with its energy crisis.

4.7 Budget and debt - Montenegro

Montenegro’s budget plan for 2022, which is yet to be adopted by
parliament, has set the deficit at 3.87% of GDP. The government
expects it to reach a record-high €5.3bn. The budget relies on a strong
tourist season with revenue set at €1bn, the peak achieved in 2019.

Oveall budget revenue is set at €1.967bn, including tax revenue of
€795mn. The spending is set at €2.172bn, including current budget
spending of €1.924bn, capital spending of €248mn. The budget deficit
is set at €205mn, Finance Minister Milojko Spajic has said.

Healthcare costs will be increased by 11.6% to €344mn, while the
social care spending is set at €677mn, up by €40mn.

The government has introduced a set of tax reforms and higher wages
in its programme Europe Now presented in October. The minimal net
wage should go up to €450 in 2022 from the current €250 and the
average net wage should rise to €700 from €530. Also, the tax burden
on employees would be lowered. Currently, the taxes and contributions
comprise 39% of the gross wages, while in 2022 they should fall to
21%.

The government has said it intends to increase additionally the wages
of medical workers. As of January 2022, salaries of general
practitioners will rise to €809 from current €622, those of specialists to
€981 from €755, and of senior specialists to €1,070 from €823.

The government also plans to introduce a progressive tax on corporate
income and on personal income as part of tax reforms that should
stimulate economic growth.

123 SE Outlook 2022 www.intellinews.com