The compilation of state budget will be made for a period of three years instead of one year, as announced by the Ministry of Finances.
The latest changes made in the organic law of state budge foresee that institutions will compile all projects based on the time and value of it, a measure that is expected to reduce the creation of new debts. Within the last week of February, the Ministry of Finances will approve the Budgetary Middle Term Program for 2016-2018.
The Ministry has appealed to all state institutions to submit their draft budgets for this period of time and they will be presented to the parliament along with the budget of 2016 by the end of the year. After the submission of draft budgets, the Ministry of Finances will discuss with respective Ministries and institutions for the minimal and maximal amount for each project.
The aim of this initiative is to prevent the continuous growth of public debt, since institutions present continuously new projects and funding proposals.
Referred to macro-economic and fiscal framework for 2015-2017 period, the public debt during 2015 will reach 71.7%, in 2016 will be 69.2% and in 2017 is predicted to be 65.6%. The legal and theoretical framework of public finances administration has improved significantly in latest years, based on the European Union legal framework.