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TIRASPOL, December 29. /TASS/. The government of the unrecognized republic of Transdniestria has referred to the parliament a draft budget for 2016, with spending being twice as big as revenues, parliament speaker Vadim Krasnoselsky told journalists on Tuesday.
Thus, the draft fixes budgetary spending at 4.7 billion Transdniestrian rubles (about $436 million) and income - at 2.3 billion Transdniestrian rubles (about $212 million). "This bill has already been submitted to the Supreme Council [legislature]. It has been referred to all parliamentary committees to be put on the agenda of the parliament’s plenary session in the near future," he said.
An austerity regime was imposed in Transdniestria in March 2015 due to a very difficult economic situation. Wages and pensions were cut by a third. This regime was lifted before parliamentary elections in November. Transdniestria’s President Yevgeny Shevchuk said the republic’s export-oriented economy had been severely impacted by the crisis in neighboring Ukraine and trade restrictions imposed by Chisinau and Kiev. He said the republican government planned to cover the deficit by external loans.