OREANDA-NEWS. June 04, 2010. It is provided by the bill of amending and modifying the Law on the State Budget for 2010, developed and presented by the Ministry of Finance. As it was informed in the Ministry, the necessity of this bill is stipulated by economic development registered the current year and its impact on the state budget.

The memorandum to the bill notes that good results of budget execution in the first four months of this year are the result of structural reforms and the commitments to the development partners. The program with IMF allowed normalizing financial relations with the external creditors. In addition, new prospects for cooperation with the external donors and attraction of additional resources to ensure economic growth have appeared.

The Ministry of Finance proposes to increase revenues from taxes on profits from the business activity by 94.7 million leis, the value added tax on the imported goods (taking into account the growth of the domestic demand based on imports) by 425.6 million leis, excise taxes (on wine materials, vodka, cognac and other alcohol beverages, tobacco products, jewelry, etc) – by 45.6 million leis, taxes on foreign trade and foreign transactions - 81 million leis, dividends from the share of state participation in the joint stock companies – by 55.6 million leis, the balance of NBM’ s net profit- by 335.5 million leis, and other payments- by 47 million lei.

At the same time, it is estimated that during the year, the domestic demand for the imported products and foreign demand for the exported goods will reduce funds for VAT payment by 61.3 million leis. According to the Ministry of Finance, the main decline in revenues will affect the VAT on goods manufactured in the country and services provided - by 155.9 million lei (in connection with the reduction in number of entities paying VAT and the increased costs related to investments), the excises on cars – by 72 million leis ( as since the beginning of the year, sales of the new cars fell by 37.9% compared to the same period of the last year), tax on viticulture revival- by 26 million leis ( due to the reduction of the domestic sales market), other benefits - 4.7 million leis and grants (due to the exchange rate fluctuations) – by 12 million leis.