LAW OF THE REPUBLIC OF MOLDOVA

of December 15, 2017 No. 289

About the government budget for 2018

The parliament adopts this organic law.

Chapter I. General provisions

Art. 1. – (1) the Government budget for 2018 affirms according to the income in the amount 36922005, thousands of lei, on expenses as 41984505,0 amount thousand lei, with deficit in 5062500,0 amount thousand lei.

(2) General indicators and sources of financing of the government budget are provided in appendix 1.

(3) the Structure of the income of the government budget is provided in appendix 2.

(4) Budgets of the bodies financed from the government budget are provided in appendix 3.

Chapter II. Special provisions

Art. 2. – Assignments for specific purposes as follows affirm as budgets of separate budget bodies / organizations according to spheres of competence:

a) for road fund – in the amount 972449, thousands of lei. In departure from Item a provisions) parts (1) article 2 of the Law on road fund No. 720/1996 in 2018 contributions to road fund from the total amount of excises on oil products (except for the liquefied gas) shall not exceed percent 34,29;

and-1) for the Program of repair of national public roads (within the settlement), provincial, municipal roads and streets - in 800000,0 amount thousand lei;

b) on realization of process of privatization of property of public property of the state, including on the basis of individual projects, – in 2000,0 amount thousand lei;

c) for Fund of energy efficiency – in 50000,0 amount thousand lei;

d) for National Regional Development Fund – in 200000,0 amount thousand lei;

e) for National fund of development of agricultural industry and the rural zone – in the amount 900000, thousands of lei. The procedure for distribution of means of National fund of development of agricultural industry and the rural zone is established by the provision approved by the Government;

f) for Fund of grapes and wine – in 45789,5 amount thousand lei, from them 28789,5 thousand lei from National fund of development of agricultural industry and the rural zone;

g) for National ecological fund – in 269290,9 amount thousand lei;

h) on professional training of the pedagogical and managerial personnel of the sphere of the general education and on development of contents of training programs in school disciplines of primary, gymnasia and lyceum education – in 32000,0 amount thousand lei and on implementation of the minimum standards of education – in 11822,6 amount thousand lei at the expense of the loan provided by the World Bank within the "Education Reform in Moldova" project;

i) on support of cultural projects / programs of public associations – in 7409,2 amount thousand lei and on support of activities of theaters, circus and concert organizations – in 130638,8 amount thousand lei;

j) on partial compensation of the fees of compulsory national social insurance paid by the organizations and companies of public association "Association of blind persons of Moldova" – in 530,5 amount thousand lei, Associations of deafs of the Republic of Moldova – in 467,7 amount thousand lei and Society of disabled people of the Republic of Moldova – in 280,0 amount thousand lei;

k) on acquisition of the equipment and raw materials for companies of public association "Association of blind persons of Moldova" – in 2072,7 amount thousand lei, Associations of deafs of the Republic of Moldova – in 1435,5 amount thousand lei and Society of disabled people of the Republic of Moldova – in 1637,6 amount thousand lei;

l) on creation of workplaces at companies of public association "Association of blind persons of Moldova" – in 250,0 amount thousand lei and Society of disabled people of the Republic of Moldova – in 250,0 amount thousand lei;

m) on payment of deafs of the Republic of Moldova by Association of the services of sign language translation provided by translators at the request of deaf, mute or deaf-and-dumb, – in 269,0 amount thousand lei;

n) for National Olympic and sports committee – in 4000,0 amount thousand lei, from which for the purpose of preparation and participation of the Moldavian athletes in the international competitions – in 3000,0 amount thousand lei and for the purpose of acquisition of food medicines and the sports equipment and stock – in 1000,0 amount thousand lei;

o) for Paralympic committee of the Republic of Moldova – in the amount 1000, thousands of lei for the purpose of training of national Paralympic team for the Olympic Games of 2020;

p) for Fund of support of the population – in 91883,6 amount thousand lei;

q) on expansion of the woods on the degraded lands belonging to bodies of local public authority – in 2141,2 amount thousand lei;

r) on financing of political parties – in 40000,0 amount thousand lei;

s) on financing of the capital investments on the central bodies of the public power – in 2431128,8 amount thousand lei, with distribution according to appendix 4;

t) in the budget of Fund of social investments – for works on updating of organizations of primary, gymnasia and lyceum education in subordination of local authorities of the public power – in 55000,0 amount thousand lei at the expense of the loan provided by the World Bank within the "Education Reform in Moldova" project.

Art. 3. – Approve in the government budget of assignment for:

a) transfers in other budgets and funds:

– in the budget of the national social insurance – in 6755064,8 amount thousand lei, including for covering of budget deficit of the national social insurance – 1113860,9 thousand lei;

– in funds of compulsory medical insurance – in the amount 2728025, thousands of lei, including for insurance of separate categories of persons according to the legislation – 2634969, thousands of lei, for implementation of national programs in the field of health care – 69033,7 thousand lei and at the expense of the loan provided by the World Bank within the "Upgrade of Health Care Sector in the Republic of Moldova" project – 24021,8 thousand lei;

- in local budgets - in the total amount of 10010204,1 thousand lei, including 8733, thousands of lei for covering of the expenses made in 2017 from own income of local budgets for measures of social protection and for infrastructure of local highways public and on the capital expenditures financed by transfers of special purpose from the government budget and also for compensation of some loss of income in 2018. Transfers at the expense of the loan provided by the World Bank within the "Education Reform in Moldova" project on acquisition of the educational equipment - 8379,1 thousand lei and on acquisition of school furniture - 11653,7 thousand lei are also provided. Distribution of transfers is provided to local budgets in appendix 5. In departure from part provisions (4) article 27 of the Law on local public finance No. 397/2003 in 2018 transfers of general purpose are distributed monthly proceeding from ratio: 1/10 annual amounts monthly - within the first six months of year and 1/15 monthly - within the next six months;

b) works on updating of organizations of primary, gymnasia and lyceum education in subordination of local authorities of the public power – in 67829,1 amount thousand lei at the expense of the loan provided by the World Bank within the "Education Reform in Moldova" project on which the Ministry of Education, culture and researches acts as the investor. Distribution of these assignments and determination of obligations of the parties are performed by the Government;

c) payments of fees in the international organizations which member is the Republic of Moldova, – in 51646,1 amount thousand lei, implementations of Strategy of reform of public management (including staff expenses) – in 20000,0 amount thousand lei, activities for reintegration of the country – in 15000,0 amount thousand lei. Distribution of these assignments on receivers is performed by the Government;

d) Reserve fund and Intervention fund of the Government – in 99000,0 amount thousand lei and 40000,0 thousand lei respectively;

e) supports of the program of grants for youth initiatives at the local level – in 3000,0 amount thousand lei. Distribution of these assignments and determination of obligations of the parties are performed by the Government;

f) ceased to be valid;

g) coverings of additional current expenses of the local authorities of the public power which were published within year and unforeseen in these budgets - in 27000,0 amount thousand lei. Distribution of these assignments to local authorities of the public power is performed by the Government.

Art. 4. – For implementation of the state program "First house" assignments are provided in 55000,0 amount thousand lei. Distribution of these assignments is performed in the procedure established by the Government.

Art. 5. - (1) financial resources Are provided for:

a) increases in the authorized capital of the state company "Railroad of Moldova" in 82800,0 amount thousand lei (equivalent 4, 0 million euros) at the expense of the loan provided by the European Investment Bank within the "Project of Purchase of Locomotives and Restructuring of Railway Infrastructure" project;

b) designings and constructions of the polyvalent arena of national value in 102000,0 amount thousand lei as fee in the authorized capital of National Arena limited liability company;

c) increases in the authorized capital of the state company "Palatul Republicii" in 19500,0 amount thousand lei;

d) increases in the authorized capital of the state company "Pensiunea din Holercani" in 11953,0 amount thousand lei.

(2) Allocation provided by parts (1) - (4) means it is performed based on the orders of the Government.

Art. 6. – The financial resources received from budgets components of the national public budget by public bodies / organizations on self-government 6, are operated by the state companies and joint-stock companies which founders are the central and local authorities of the public power according to appendix by means of the Single treasurer account of the Ministry of Finance.

Art. 7. – Determine that as of December 31, 2018 the internal public debt shall not exceed 24459,6 of one million lei, external public debt – 32516, one million lei (equivalent 1936, of 7 million US dollars). The remaining balance of the state external guarantees shall be equal to zero, and the remaining balance of the state internal guarantees shall not exceed 1000,0 of one million lei.

Art. 8. – (1) the Private tax represents the lump sum payment levied in case of transactions with property of public property in the course of privatization irrespective of type of the used means.

(2) Subjects of taxation by private tax are legal entities and physical persons of the Republic of Moldova, and also foreign legal entities and physical persons which in the course of privatization transfers to private property property of public property.

(3) as Subject to taxation by private tax the property of public property, including shares acts.

(4) the Rate of private tax is established in the amount of 1 percent of acquisition value of property of public property, privatizeable, including share value, privatizeable.

(5) the Private tax is paid before agreement signature of purchase and sale and is brought, depending on property accessory, in the government budget or in the local budget.

(6) the private tax in case of non-paid obtaining is not paid to private property of property of public property by the physical resident persons who are not engaged in business activity.

(7) in case of termination by retroactive effect of the purchase and sale agreement caused by non-execution or improper execution by the buyer of the obligations, the amounts of the paid private tax do not return.

(8) Depending on accessory of property of public property control of execution of provisions of this Article is assigned to the central or local authorities of the public power.

Art. 9. – (1) the minimum retail price on cigarettes, goods item of 2402 of 20, as follows Is established:

a) for the period from January 1 to June 30, 2018:

Goods item	Description of goods	Unit of measure	Approximate minimum the price, in lei
2402 20	The cigarettes containing tobacco:
	– with the filter	1 pack/cost in lei	21
	– without filter oval up to 70 mm long	1 pack/cost in lei	10
	– without filter with mouthpiece, other	1 pack/cost in lei	12

b) for the period from July 1 to December 31, 2018:

Goods item	Description of goods	Unit of measure	Approximate minimum the price, in lei
2402 20	The cigarettes containing tobacco:
	– with the filter	1 pack/cost in lei	21
	– without filter oval  up to 70 mm long	1 pack/cost in lei	14
	– without filter with mouthpiece, other	1 pack/cost in lei	14

(2) the Price for retail sale of cigarettes (single packaging) with the filter / without filter, the goods item of 2402 of 20, cannot be below the estimated minimum price established in part (1).

(3) Sale of cigarettes with the filter / without filter at the prices below estimated minimum prices attracts imposing of penalty in the amount of 50 percent of cost of the corresponding cigarettes, except for the cigarettes made or imported till January 1, 2018, which are registered in remaining balance at the time of check implementation, proceeding from the corresponding estimated minimum price, but at least 1000 lei.

(4) the Established penalty is collected in the government budget according to the decision of the State Tax Administration.

Art. 9-1. - (1) the Base rate for calculation according to provisions of the Law on single system of compensation in the budget sphere since December 1, 2018 of the salary of workers of the budget sphere is established in the amount of 1500 lei.

(2) In departure from part provisions (1) the following base rates are established:

- in the amount of 1000 lei - for persons who are taking up responsible state positions as a part of Parliament;

- in the amount of 1100 lei - for heads of offices and advisers as a part of offices of the Chairman of the parliament, President of the Republic of Moldova and the Prime Minister;

- in the amount of 1300 lei - for the persons who are taking up responsible state positions in bodies/organizations, financed from the government budget, except for faces, taking up responsible state positions as a part of Parliament, judges, prosecutors, judicial inspectors;

- in the amount of 1600 lei - for pedagogical and managing personnel of educational institutions;

- in the amount of 1600 lei - for personnel which according to appendices to the Law on single system of compensation in the budget sphere No. 270/2018 belong to the classes of compensation from the 1st on the 25th;

- in the amount of 2000 lei - for personnel of Service of information and safety, the National center for fight against corruption, National authority on integrity, Services according to the prevention and anti-money laundering and Organa of civil aviation;

- in the amount of 2500 lei - for judges (except judges of the Constitutional court, the Supreme council of magistracy and the Highest trial chamber), prosecutors, judicial inspectors, inspectors of Inspection of prosecutors;

- in the amount of 2600 lei - for judges of the Constitutional court, the Supreme council of magistracy and the Highest trial chamber.

Art. 10. – (1) the Minimum amount of rent of property of public property is determined according to appendix 7.

(2) Are exempted from rent of rooms (excepting payment for utilities):

a) the budget bodies / organizations financed from the government budget and the creative unions – for the rooms hired at other budget bodies / organizations financed from the government budget and also at the state companies which founder is their higher body;

b) the state companies which founder is the Department of penal institutions of the Ministry of Justice, – for the rooms hired at organizations of penal system.

Art. 11. – (1) to the Financial institutions which provided till July 29, 1994 long-term soft credits to the housing cooperatives organized and which began construction of apartment houses till January 1, 1993, the commercial banks which provided such credits to the housing cooperatives specified in the Resolution of Parliament No. 209/1994, after July 29, 1994 and also the financial institutions which granted the loans to the housing cooperatives specified in resolutions of Parliament No. 834/1996, No. 1588/1998, No. 1147/2000 and No. 905/2002, on the conditions provided by these resolutions the loss of income connected with provision of these credits is compensated from the government budget.

(2) According to part provisions (1) to financial institutions also the loss of income on the soft and non-interest loans granted to the categories of persons having according to the legislation the right to them depending on the source of covering of these losses provided by regulations is compensated.

(3) Provisions of parts (1) and (2) do not extend to the credits used not for designated purpose.

Art. 12. – Compensations are paid to persons which are subject according to the legislation to compulsory national insurance based on the documents processed by profile services of bodies (organizations) in which these persons work from means of relevant organs (organizations).

Art. 13. – (1) Commission charges for services in distribution of compensations to persons which underwent to political repressions, immediate compensations in connection with connection to the gas pipeline, lump-sum allowances on construction of the house or cooperative housing, acquisition of housing or recovery of old housing and other social payments of special purpose to some categories of the population provided in the government budget are established in case of the conclusion of contracts between the payment service provider and the Ministry of Finance in the amount of no more 0,8 of percent of the distributed amount.

(2) Commission charges for services in reception of applications on indexation and distribution of the amounts indexed according to the Law on indexation of money deposits of citizens in Savings bank No. 1530/2002, provided by means of the state company "Posta Moldovei", are established in the amount of no more than 10 lei for reception of an application and in the amount of no more 0,8 of percent of the distributed amount.

(3) Commission charges for cash disbursement of money financial institutions for payment by means of the state company "Posta Moldovei" of the social benefits specified in parts (1) and (2), are established in the amount of no more 0,25 of percent of the issued amount and are paid from the government budget.

(4) Commission charges for services in acceptance by means of other payment instruments, than payment cards, from the population, the stating subjects, tax collectors and tax employees of payments into the Single treasurer account of the Ministry of Finance (except for customs payments), and also commission charges for return of payments from these budgets to the population are established in the amount of no more 1,0 of percent of the arriving / returned amount, but at least 1 leu of no more 2,5 of leu for payment, based on the agreement signed by the Ministry of Finance with payment service providers and are paid from the government budget.

(5) the Commission charges specified in part (4), return to the government budget from the budget of the national social insurance and funds of compulsory medical insurance.

Art. 14. – (1) to Establish payment from the government budget of commission charges for:

a) execution through the Automated interbank payment system of payment documents of treasurer system of the Ministry of Finance;

b) services in cash withdrawal of money, servicing of currency transactions in accounts of the government budget, local budgets of public bodies / organizations on self-government and other subjects which are served through the Single treasurer account of the Ministry of Finance;

c) ceased to be valid;

d) banking services on servicing of the accounts managed through treasurer system intended for projects implementation financed from external sources;

e) services in translation/cash withdrawal of money from accounts of the government budget and local budgets based on executive documents;

f) content of the sealed-up sending for storage of values.

(2) Commission charges for acceptance from physical persons of customs payments are paid by customs authorities at the expense of own means based on the agreement signed by them with financial institution.

Art. 15. – (1) the Percent charged on balances in cash of budgets components of the national public budget, public bodies / organizations on self-government and other subjects which are on the accounts opened in the Single treasurer account of the Ministry of finance / financial institutions are distributed according to the government budget, the budget of the national social insurance, funds of compulsory medical insurance.

(2) the Percent charged on balances in cash on the accounts opened in financial institutions and intended for projects implementation, financed from external sources are transferred completely into budgets in which structure they are included (the government budget or local budgets), except for of the percent charged on balances in cash of Fund of long-term development which remain in its management.

Art. 16. – In departure from provisions of article 60 of the Law on public finance and budget and tax responsibility No. 181/2014 the Government is allocated with powers on redistribution of the assignments approved by this law between the ministries, other budget bodies / organizations in connection with structural reorganization of the central public management subordinated to the Government including in case of change of regulations or adoption of new regulations on the organization and functioning of these subjects, and also, for the purpose of non-admission of blocking of activities of the budget bodies / organizations, in connection with non-use of the budget resources.

Art. 16-1. - The government is allocated with powers on redistribution of the amount of 113200,0 thousand lei on income types and expenses (including staff expenses), on receivers owing to change of the status of some public bodies / organizations on self-government and adoptions of regulations about the organization and functioning of these subjects.

Art. 17. – The Ministry of Finance is granted the right:

a) according to reasonable appeals of the central bodies of the public power to change the approved indicators of the government budget according to the income and expenses proceeding from amounts of grants, donations, sponsor's and other non-paid means which in addition went into the disposal of the budget bodies / organizations;

b) redistribute the assignments approved for the budget body between economic expense categories, without mentioning the amounts approved at the level of the program/subprogramme;

c) according to the offer of the Ministry of Agriculture, regional development and the environment based on the decision of National council on coordination of regional development to redistribute the assignments approved for National Regional Development Fund;

d) according to the offer of the Ministry of Agriculture, regional development and the environment based on the decision of Administrative board to redistribute the assignments approved for National ecological fund;

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