"ECO" Weekly Economic Magazine, 9 May 2007
The IMF and Chisinau authorities share different opinions on the increase of
salaries in public sector
Thomas Richardson, the head of the IMF staff mission visiting Chisinau
asserts that increase of salaries in public sector could create pressures
onto the state budget while Igor Dodon, the minister of Economy and Trade
suggests that increase of salaries is imperative at the moment.
"I understand that the salaries are small. My wife works as a school teacher
at a public school and she will not forgive me for the actions leading to
decrease of salaries. But I believe it is very important that the number of
employees is rationalized as well as their work”, - stated Thomas Richardson
during press conference held Thursday (cited by BASA-press).
The IMF official, upon completion of a review mission to Moldova, stated
that increase of salaries in addition to recently announced tax amnesty and
reduction of income tax rates could generate short term negative effects
onto collection of revenues.
In his reply, Igor Dodon, the minister of Economy and Trade highlighted the
necessity of raising salaries. “My mother is also a teacher and her salary
is very small. There will be increase of salaries”, - said minister Dodon.
He also said it is premature to estimate the size of salaries increase in
"We believe thay possible underperformances in some of the categories of
revenues could be compensated by the increase in other categories”, - added
Despite these concerns, the IMF staff mission stated that the state budget
execution for the first quarter is in full conformity with prior agreement
while the outlook “seems to be in line with the provisions set forth by the
Memorandum of Understanding between the IMF and Republic of Moldova”.
The IMF staff mission visited Chisinau during 25 April – 8 May with the
scope of reviewing performances of the Government and National Bank on
implementation of commitments stipulated by the Program with the IMF. The
mission prepared a new draft Memorandum for the remainder of 2007.