LAW OF THE REPUBLIC OF MOLDOVA

of November 30, 2018 No. 303

About the government budget for 2019

The parliament adopts this organic law.

Chapter I General provisions

Art. 1. - (1) the Government budget for 2019 affirms according to the income in 40633531,5 amount thousand lei, on expenses as 46336817,6 amount thousand lei, with deficit in 5703286,1 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 and sources of financing of the budget balance are provided in appendix 2.

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

(5) Expenses of the government budget according to functional classification are provided in appendix 4.

(6) the Amount of staff expenses on the central bodies of the public power is provided in appendix 5.

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 1024089,1 amount thousand lei. Annual assignments from the total amount of excises on oil products, the gas except for liquefied, shall not exceed percent 34,84;

b) for the Program of repair of national public roads (within settlements), provincial, municipal roads and streets - in 950000,0 amount thousand lei;

c) on realization of process of privatization of property of public property of the state, including on the basis of individual projects, - in 3280,0 amount thousand lei;

d) for Fund of energy efficiency – in 40000,0 amount thousand lei;

e) for National Regional Development Fund - in 220000,0 amount thousand lei;

f) for National fund of development of agricultural industry and the rural zone - in the amount 950000, 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;

g) for Fund of grapes and wine - in 47789,5 amount thousand lei, from them 25789,5 thousand lei from National fund of development of agricultural industry and the rural zone;

h) for National ecological fund - in 298950,0 amount thousand lei;

i) 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 33417,2 amount thousand lei and on implementation of the minimum standards of education - in 15223,8 amount thousand lei at the expense of the loan provided by the World Bank within the "Education Reform in Moldova" project;

j) on support of cultural projects / programs of public associations - in 6030,5 amount thousand lei and on support of activities of theaters, circus and concert organizations - in 165700,8 amount thousand lei;

k) 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 471,0 amount thousand lei, Associations of deafs of the Republic of Moldova - in 366,5 amount thousand lei and Society of disabled people of the Republic of Moldova - in 260,0 amount thousand lei;

l) on acquisition of the equipment and raw materials for companies of public association "Association of blind persons of Moldova" - in 2107,7 amount thousand lei, Associations of deafs of the Republic of Moldova - in 1684,5 amount thousand lei and Society of disabled people of the Republic of Moldova - in 1672,6 amount thousand lei;

m) 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;

n) 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 289,2 amount thousand lei;

o) for National Olympic and sports committee - in 8000,0 amount thousand lei, from which for the purpose of preparation and participation of the Moldavian athletes in the international competitions - in 5700,0 amount thousand lei and for the purpose of acquisition of food medicines and the sports equipment and stock - in 2300,0 amount thousand lei;

p) 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 Paralympic Games of 2020;

q) for Fund of support of the population - in 86108,9 amount thousand lei, including on financing of the minimum packet of social services by bodies of local public authority of the second level - 64244,5 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 1665393,6 amount thousand lei, with distribution according to appendix 6;

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 92046,7 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 8158479,9 amount thousand lei, including for covering of budget deficit of the national social insurance - 2137721,9 thousand lei;

- in funds of compulsory medical insurance - in the amount 2813648, thousands of lei, including for insurance of separate categories of persons according to the legislation - 2719265, thousands of lei, for implementation of national programs in the field of health care - 72278,3 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 - 22104,9 thousand lei;

– in local budgets – in the total amount of 11957626,7 thousand lei, including for covering of the loss of income from tax on the income from the salary of physical persons and from other taxes – 311783,2 thousand lei, for covering of the expenses performed at the expense of own income of local budgets for measures for social protection and for infrastructure of the roads financed by transfers of special purpose from the government budget, – 5495,1 thousand lei, for partial covering of expenses on realization of provisions of the Law on single system of compensation in the budget sphere No. 270/2018, belonging to own spheres of activity, – 108055,9 thousand lei, for measures for maintenance of the children placed in social services of foster education and orphanages of family type – 3627,3 thousand lei, at the expense of the loan provided by the World Bank within the «Education Reform in Moldova» project on acquisition of the educational equipment and school furniture – 14100, thousands of lei, on equipment of laboratories – 3000,0 thousand lei and on professional training of the pedagogical and managerial personnel of organizations of preschool, gymnasia and lyceum education for the purpose of implementation of documents kurrikulumny the politician – 3494,1 thousand lei. For realization of pilot project on catering services in education system the expenses connected with food of children/pupils from public educational institutions of the area Streshen since April 1, 2019 will be operated by regional council of Streshen. Distribution of transfers in local budgets is performed according to appendix 7;

b) ceased to be valid;

c) payments of fees in the international organizations which member is the Republic of Moldova, - in 60930,8 amount thousand lei, implementations of Strategy of reform of public management (including staff expenses) - in 9000,0 amount thousand lei, activities for reintegration of the country - in 15000,0 amount thousand lei. Distribution of these assignments is performed based on the orders of the Government;

d) Reserve fund and Intervention fund of the Government - in 40000,0 amount thousand lei and 82430,0 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 is performed in the procedure established by the Government;

f) ceased to be valid;

g) implementations of single system of compensation in the budget sphere - in 760497,6 amount thousand lei. Distribution of these assignments on bodies of the public power is performed based on the orders of the Government.

Art. 4. - For implementation of the state program "First house" assignments are provided in 12000,0 amount thousand lei, including 5000,0 thousand lei on repayment of the state guarantees within the program. 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 261665,0 amount thousand lei (equivalent 12, 5 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;

b) designings and constructions of the polyvalent arena of national value in 100000,0 amount thousand lei as fee in the authorized capital of National Arena limited liability company;

(2) Allocation provided in part (1) 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 8, 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, 2019 the internal public debt shall not exceed 24053, one million lei, external public debt - 34229,4 of one million lei (equivalent 1901, of 6 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 1100,0 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, for the period from January 1 to December 31, 2019, as follows Is established:

Goods item	Description of goods	Unit of measure	Estimated minimum price, in lei
2402 20	The cigarettes containing tobacco:
	– with the filter	1 pack/cost in lei	25
	– without filter	1 pack/cost in lei	19

(2) the Price for retail sale of cigarettes (single packaging) with the filter / without filter, goods item

2402 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, 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. 10. - (1) For payroll calculation of workers of the budget sphere since January 1, 2019 according to provisions of the Law on single system of compensation in the budget sphere No. 270/2018 the main base rate in the amount of 1500 lei is established.

(2) In departure from part provisions (1) the following main base rate is established in the amount of:

- 1000 lei - for the persons who are taking up responsible state positions from Parliament;

- 1100 lei - for heads of offices and advisers from office of the Chairman of the parliament, the President of the Republic of Moldova and the Prime Minister;

- 1300 lei - for the persons who are taking up responsible state positions, from bodies/organizations, financed from the government budget, except for persons, taking up responsible state positions from Parliament, judges, prosecutors, judicial inspectors, the secretary general of the Government, state secretaries, chiefs and deputy chiefs of territorial bureaus of the State office;

- 1600 lei - for pedagogical personnel and managing personnel of educational institutions, except for directors (heads) of organizations of general and professional technical education for whom the base rate is established in the amount of 1800 lei;

- 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;

- 1600 lei - for officers of the National inspectorate on patrol of the General inspectorate of police of the Ministry of Internal Affairs (except for Group No. 1 as a part of Battalion No. 1 of the Crew of patrol) and deconcentrated divisions of the General inspectorate of police, the General inspectorate on emergency situations and Department of troops of carabineers of the Ministry of Internal Affairs;

- 1500 lei - for the secretary general of the Government, state secretaries, chiefs and deputy chiefs of territorial bureaus of the State office;

- 1700 lei - for subofficers of the National inspectorate on patrol of the General inspectorate of police of the Ministry of Internal Affairs (except for Group No. 1 of Battalion No. 1 of the Crew of patrol) and deconcentrated divisions of the General inspectorate of police, the General inspectorate on emergency situations and Department of troops of carabineers of the Ministry of Internal Affairs;

- 1700 lei - for advisers for the dispute resolution of the National agency for the dispute resolution (except for the CEO and the deputy director general);

- 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, Organa of civil aviation;

- 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;

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

Art. 11. - (1) the Minimum amount of rent of property of public property is determined according to appendix 9.

(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, without the delivery right in the sublease;

b) the state companies which founder is the National penitentiary administration, - for the rooms hired at organizations of penal system.

Art. 12. - (1) to the Banks 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 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 banks 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 banks 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. 13. - 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 the relevant bodies / organizations.

Art. 14. - (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, the social payments performed from fund of support of the population, 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 banks 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. 15. - (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) services in acceptance of payments from the population by means of payment cards in budgets components of the national public budget and for return of payments from these budgets to the population;

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 with bank.

Art. 16. - (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 finance/banks 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 banks 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. 17. - 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.

Art. 18. - 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) according to reasonable appeals of the central bodies of the public power to 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) redistribute according to the offer of the Ministry of Agriculture, regional development and the environment:

- the assignments approved for National Regional Development Fund based on the decision of National council on coordination of regional development;

- the assignments approved for National ecological fund based on the decision of Administrative board;

d) redistribute according to the offer of Central Election Commission the funds allocated for the organization of parliamentary elections between Central Election Commission and the Ministry of Foreign Affairs and European Integration for creation and functioning of the polling precincts abroad;

e) redistribute according to the offer of the Ministry of Education, culture and researches on reasonable requests of local authorities of the public power, the assignments approved for allocation of monetary compensations to pedagogical personnel from public educational institutions in connection with change of number of beneficiaries;

f) redistribute according to reasonable appeals of the National agency on researches and developments the funds allocated for the organization and carrying out tenders of projects to the central bodies of the public power, founders of organizations in the field of science and innovations;

g) for covering of temporary cash gap of the government budget to sign within fiscal year contracts on receipt of internal loans in the market of government securities over the limits provided in the government budget with return term in 2019;

h) issue government securities for creation of reserve of liquidity for the purpose of reduction of liquidity risk of the government budget;

i) perform recrediting of executive bodies of administrative and territorial units at the expense of external loans; as compensation guarantee at the same time serve including transfers of general purpose from the government budget to the corresponding local budgets;

j) change the relations between the government budget and local budgets in case of delegation on legal causes of separate powers or their response, in case of transition in accordance with the established procedure of some organizations from subordination of local authorities of the public power in subordination of the central bodies of the public power and vice versa, and also in case of transition of some organizations from subordination to local authorities of the public power of the first level in subordination to local authorities of the public power of the second level and vice versa;

k) redistribute the transfers of special purpose from the government budget provided in appendix 7, between local budgets of the first level and the second level and between local budgets of one level.

Art. 19. - The government is allocated with the right to create in the government budget compensation fund for satisfaction of compelling needs of local authorities of the public power in connection with reforming of system of the relations between the government budget and local budgets.

Art. 20. - This law becomes effective since January 1, 2019.

Appendix 1

General indicators and sources of financing of the government budget

Name	Code	Amount, one thousand lei
Income, all	1	40633531,5

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