MTEF 2009-2011, priority policy actions

November 06, 2008

Table of contents

• Components of the social protection budget• Expenditures under the responsibility of the

MSPFC• Actions which influenced expenditures• Links between ongoing reforms

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Components of the social protection budget

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Source of financing the social protection budget

Indicators 2008, approved

2009, project

2010 2011

TOTAL, million lei 7532,9 9162,5 10239,1 11381,5

State social insurance budget 5360,9 6586,8 7547,8 8525,5

State budget 1921,3 2289,6 2402,0 2558,3

Local administrative-territorial units budgets 250,7 286,1 289,3 297,7

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Expenditures under the responsibility of the MSPFC

INDICATORS 2008, approved

2009, project

2010 2011

TOTAL, million lei 286,9 324,4 308,5 331,4

Social assistance institutions 131,4 149,2 150,2 157,7

Administration units 5,3 6,3 6,2 6,3

Institution and social services not mentioned in other lines

60,0 86,9 57,7 61,5

Social support of population fund 86,7 79,0 87,4 93,9

Supporting the associations of persons with special needs 2,0 2,0 2,0 2,0

New building counstruction 1,5 1,0 5,0 10,0

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Program I. “Policy development and management in the field of social

protection"• Continue the development of the network of employed social

workers and continuous training of the staff that works in the field of social assistance (social assistance at Oct-10-2008: approved - 996, employed - 901,5 ) – about 20 million lei each year

• Financial means will be provided in the state budget for the maintenance of 49 additional units of the National Social Insurance House that will be responsible for the “social support” payments – from 2,7 million lei in 2009 up to 3,0 million lei in 2011

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Program II. Protection in case of sickness or temporary work incapacityImprove the existing legal framework for the increase of employers’ responsibility to create optimal working conditions and, respectively, to reduce expenditures for social insurance payments as a consequence of occupational illnesses or any work accidents. These measures will save money for other activities.

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Program III. “Old-age person social protection”

• Increase the compensation for the difference in the compulsory state social insurance fees, paid from the state budget, from 4% to 6% - 19 million lei in 2009 up to 24,7 million lei in year 2011

• Coverage from the state budget of the difference up to the minimum pension amount for 2009-2011 – starring with 18,5 million lei in 2009 up to 72,1 million lei in 2011

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Program IV. “Protection as result of loosing the income earner”

Increase of the death allowance by MDL 100 annually. In 2009 the death allowance will amount to MDL 900 for insured persons and MDL 800 for uninsured persons.

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Program V. “Family and child protection”

• Increase of the lump sum birth allowance at the birth of the first baby and for each subsequent child by MDL 200 yearly.

• Open and maintain the activity of day social assistance centers and placement centers – about 21 million lei each year

• Increase the allowances for pupils and students that are orphan and under guardianship – about 23,6 million lei each year

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Program VI. “Employment and unemployment protection ”

Starting with 2009, the expenditures made from the Unemployment fund, which do no imply social insurance risks, will be covered from the state budget, through the agency of the Ministry of Economy and Trade – starting with 33,8 million lei in 2009 up to 41,7 million lei in 2011 year

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Program VII. “Protection as to avoid social exclusion ”

• Reforming the social support of people in need

2009: – 126,8 million lei; 2010: – 344,4 million lei;2011: – 344,4 million lei.

• Providing targeted social support on the basis of the assessment of families’ revenues

2009: + 202,1 million lei; 2010: + 402,9 million lei;2011: + 435,5 million lei.

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Program VIII. “Additional social assistance for persons with special needs”

Indicators, million lei 2009 2010 2011

1. Establish multifunctional community centres for social assistance at the community level (p.119.1 of the NDS) 5,3 5,4 5,8

2. Co-finance the Centre for protection and assistance of victims and potential victims of human traffic from Chisinau, p. 27.1 0,5 0,6 0,6

3. Open centres for assistance and protection of human traffic victims in the North region (Balti municipality) and South region (Cahul)

1,2 1,2 1,3

4. Maintain the activity of the center that provides services to victims of domestic violence in North (Balti) and open a rayon center in Hincesti (50 beneficiaries)

1,6 2,3 2,5

5. Social assistance measures for victims of trafficking in human beings (repatriation) 0,5 0,6 0,6

6. Starting with 2010, the procurement of sanatorium therapy vouchers for veterans will be covered from the state budget. 28,2 35,1

7. Increase the nutrition norms in social assistance institutions 10,8 11,7 12,413

Program IX.“Additional support of some categories of population”

• Starting with 2008, the persons that participated in and were affected by the Chernobyl accident will have the right to the monthly financial compensation in exchange for food products and supplements. Cost for this activity is 10 million lei in 2009 up to 26,3 million lei in 2011 year.

• Provide social support to young people to help them buy (build) an apartment. Measure costs is about 60,5 million lei for each year.

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Links between ongoing reforms

• Activities under National Development Strategy are included in the MTEF;

• Not all proposed activities have financial support;

• Other developed strategies are correlated between each other and with NDP.

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