MOLDOVA- The Republic of Moldova has improved its fiscal transparency, but there is no information on the state's unfunded pension liabilities, according to a report by the International Monetary Fund (IMF).
“Neither the state government nor the National Social Insurance Fund (NSIF) report on unfunded pension liabilities,” the IMF said in a report released today. “The budget documents do not include a risk analysis, but during the preparation of the 2004-06 medium-term expenditure frameworks a sensitivity analysis was prepared on the possible impact on government finances of adverse changes in key macroeconomic indicators.”
Additionally, the NSIF budget and the budget for the health insurance fund are prepared and approved independently of the state budget, which hampers the ability to present a general government budget and monitor its execution during the fiscal year, the IMF said.
The central government budget, which is comprised of the state budget, the NSIF budget and 12 “extrabudgetary funds”, is MDL6.5bn (e389m), comprising 23.9% of GDP.
However, the IMF noted that the government had made headway in improving transparency and the legal framework for managing public funds is “clear, but fragmented.” The Law on State Social Insurance of 199 defined the NSIF’s scope, and implementation of the law brought more stability and transparency into the fiscal system, the report said.
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