1. MINISTRY OF FINANCE OF THE REPUBLIC OF MOLDOVA
State Treasury
Liquidity management  
Chisinau, October 2017

2. Legislative framework
Law on Public Finances and Fiscal Responsibility # 181 dated July 25, 2014
Article 64: Within 30 days after adoption of annual budget laws, budget administrators shall develop annual liquidity forecasts for their budgets with monthly breakdown.
The purpose of forecasting is to ensure efficient liquidity management for the government budget and local budgets.

3. general provisions on liquidity management
Regulatory framework
Before 2017
Methodological guidelines on cash execution of budgets comprising the national public budget:
general provisions on liquidity management
Liquidity forecasts (annual and monthly) for the government budget
To be approved by Minister of Finance
Allocation of government budget balances (on a daily basis)
To be approved by Minister of Finance
Since 2017
Methodological guidelines on cash execution of budgets comprising the national public budget:
general provisions on liquidity management
Regulations on Managing Liquidity in the Government Budget as approved by
Minister of Finance Order # 3 dated January 9, 2017
Liquidity forecasts (annual and monthly) for the government budget
To be approved by Minister of Finance
Allocation of government budget balances (on a daily basis)
To be approved by State Treasury Director

4. Regulations on Liquidity Management for the Government Budget
Regulatory framework
Types of forecasts
Substance of forecasts
Elaborate forecasts for revenues and expenditures
Allocation of balances in the government budget
Forecasting of sources to finance budget balance
Updating / changing forecasts
Regulations on Liquidity Management for the Government Budget
Provisions
Forecasts for transfers from the government budget to the government social insurance budget, CHI Funds, local budgets, and the Road Fund
Forecasting of priority expenditures

5. Forecasting process participants
1. State Treasury
9. Other central and local public administration bodies
2. Consolidated Budget Department
8. Ministry of Agriculture, Regional Development and Environment
3. Public Debt Department
7. Ministry of Economy and Infrastructure
4. State Tax Service
6. National Social Insurance Fund
5. Customs Service

6. Forecasting Liquidity
1. Revenue administrators – revenue forecasts
2. Annual budget limits
3. Balances in TSA accounts
Liquidity forecasts 
(annual, monthly)
4. Statistical data and regulatory framework
Forecast of receipts and payments
5. National Social Insurance Fund
6. Ministry of Economy and Infrastructure
8. Public debt
7. Ministry of Agriculture, Regional Development and Environment

7. in the following sequence:
Forecasting priorities
As a matter of priority, forecasting is done for payments envisaged by Article 67 of the Law on Public Finances and Fiscal Responsibility # 181 dated July 25, 2017,
in the following sequence:
meeting obligations on servicing of government debt / debts of administrative territorial units;
expenditures on salaries, stipends, allowances, compensations, social payments, and social assistance;
expenditures on compulsory health insurance for Government-insured persons;
expenditures on heat and power resources;
expenditures from emergency funds.

8. Annual forecast Structure of forecasts Chapter I: Revenues
Chapter II: Expenditures
Chapter III: Budget balance
Chapter IV: Financing sources

9. Variations from the 2017 budget
Q I
QI Total
Q II
Q III
9-Month Execution
Q IV
Q III-IV Total
Annual Projection
Variations from the 2017 budget
Name
2017 Budget
Execution
QII Total
HI Total
Projection
Q III Total
Q IV Total
January
February
March
April
May
June
July
August
September Q
October
November
December
(+;-) % 1 4 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
I. Receipts
2.027,6
3.512,7
15.627,4
2.573,4
2.517,7
100.0
1. Revenues managed by the State Tax Service
914.1
844.2
3.543,6
975.6
999.3
6.933,4
3.444,7
974.1
2. Revenues managed by the Customs Service
9.393,5
3.Other revenues
99.3
77.2
98.2
274,7
80.3
91.7
110.0
282.0
556.7
71.4
139.0
164.3
374.7
931.4
161.3
141.2
158.8
461.3
836.0
4. VAT and excise refunds
-138.5
-229.2
-340.4
-708.1
-173.2
-207.1
-167.8
-548.1
-216.9
-232.5
-249.4
-698.8
-247.7
-258.3
-247.5
-753.5
-1.452,3
II. Payments
2.850,7
2.576,7
7.833,0
1. Payroll
389.6
524.5
507.8
491.4
454.1
520.8
573.0
505.0
551.0
4.517,2
567.2
575.0
626.3
3.397,5
2. Goods and services
81.6
122.2
154.7
358.5
113.2
119.6
342.8
701.3
96.3
157.1
139.4
392.8
124.9
162.3
140.0
427.2
820.0
3. External debt service payments
421.5
31.3
32.5
30.5
94.3
17.9
37,9
18.9
74.7
169.0
25.6
47.7
31.7
105.0
274.0
25.2
65.0
57.3
147.5
252.5
4. Domestic debt service payments
129.0
122.3
134.3
385.6
86.8
69.2
79.9
235.9
621.5
71.5
59.4
44.2
175.1
796.6
680.2
59.3
45.6
785.1
960.2
5. Subsidies
868.4
43.2
89.0
66.7
198.9
81.7
51.6
74.6
207.9
406.8
70.4
68.0
85.9
224.3
631.1
82.5
80.2
237,3
461.6
6. Road Fund
210.0
90.0
390.0
76.0
228.0
618.0
120.0
296.0
914.0
42.7
23.0
165.7
461.7
1.079,7
7. Farm producers Subsidy Fund
868.1
101.0
130.4
97.5
328.9
4.4
0.3
4.7
333.6
2.0
108.0
443.6
150.0
166.5
424.5
534.5
8. Social benefits
356.6
28.1
20.2
21,9
70.2
18.2
26.0
23.7
67.9
138.1
25.0
36.6
87.6
225.7
35.4
47.2
48.3
130.9
218.5
9. Other payments (allowances, compensations)
94.7
101.8
222,1
79.8
116.6
161.2
357.6
579,7
104.3
87.1
182.4
373.8
953.5
188.7
233.4
311.4
733,5
10. Transfers between government budget and local budgets
709.6
596.2
788.0
2.093,8
646,9
681.0
1.027,2
4.448,9
667.3
772,2
784.0
775.1
765.4
1.0676
11. Transfers between government budget and Social Insurance Fund
6.176,3
898.0
431.7
512.1
1.841,8
673.3
541.6
402.2
1.617,1
405.9
398.5
396.8
433.6
535.1
547.5
2.717,4
12. Transfers between government budget and Mandatory Medial Insurance Funds
216.1
648.3
216,0
648,2
1.296,5
216.0
648.2
13. Capital stock
691.6
-21.4
13.8
34.6
27.0
19.0
25.5
29.2
73,7
100.7
49.8
63.9
53.3
167.0
267,7
102.6
165.3
156.0
423.9
590.9
14. Capital investments
372.3
3.7
4.8
8.5
9.5
17.1
15.7
42.3
50,8
25.3
34.4
43.8
103.5
154.3
54.7
79.3
84.0
218.0
321.5
15. Inventories
669.9
9.2
55.7
91.5
156.4
47.0
105.6
76.9
229.5
385.9
51.1
52.4
43.1
146.6
532,5
41.7
49.4
46.3
137,4
284.0
16. Other expenditures
-0.2
-0.4
-1.0
-1,6
-4.4
-2.4
-2.6
-9.4
-11.0
-5.2
0.4
4.1
-0,7
-11,7
5.1
3.4
8.0
16.5
15.8
III. Balance
-823.1
-382.0
661.4
-543,7
-206.9
18.3
172.8
-15.8
-559.5
89.8
20.1
106.2
-343.4
-959,7
-713,7
-502.6
-2.176,0
IV. Sources of financing
823.1
382.0
-661.4
543,7
206.9
-18.3
-172.8
559.5
-89.8
-20.1
-106.2
-216.1
343,4
959.7
713,7
502.6
1. DOMESTIC SOURCES
118.2
73.6
260.3
452.1
-166.3
21.8
2.4
-142.1
310.0
34.1
88.5
214.1
524.1
152.6
110.1
169.9
432.6
646.7
956.7
46.6
1.1. Exchange rate valuation gains (losses)
20.3
-8.2
-16.3
-4.2
-35.3
-27,2
-31.4
11.0
-20.4
20,4
20.4
31.4
1.2 Income from government securities
886.7
-154.8
17.4
-97.7
-235.1
-8.8
-50.9
-266.8
-501.9
10.3
45.8
43.7
99.8
-402.1
97.7
192.7
292.5
-209.4
-23.6
1.3 Government securities as liquidity buffer
508.9
1.4 Privatization of government stakes in social enterprises
126.9
0.5
28.9
29.4
53,7
83.1
-10.0
73.1
21.1
32.7
53.8
1.5 STA liquidity borrowing /reimbursement
250.0
-250.0
1.6 Other domestic sources
530,3
64.4
86.5
153.1
-3.0
65.9
35.3
251.3
22.8
47.8
113.3
364.6
54.9
47.3
63.5
279.0
530.3
2. EXTERNAL SOURCES (net)
975.5
-57.6
857.3
-110.9
688.8
-71.2
229.8
-37.8
120.8
809.6
-67,3
-391.8
-166.9
-626.0
183.6
776.9
-138.3
153.3
791.9
165.9
2.1 Repayment
-1.560,0
-57,6
-238,1
-110,9
-406,6
-48,1
-157,1
-563,7
-409,0
-166,9
-643,2
-1.206,9
-78,9
-147, 4
-126,8
-353,1
-996,3
100,0
2.2 Receipts
2 555,5
1.095,4
277, 9
277,9
1.373,3
17,2
1.390,5
855,8
9.1
280,1
1.145,0
1.162,2
3. Change in balance
-508.9
762,5
-548.9
-810.8
-597,2
444.4
-269.9
-137,4
37,1
-560.1
-56.6
283.2
-30.8
195.8
-364,3
30.2
741.9
179.4
951.5
1.147,3
587,2
3.1 Opening balance
1.860,1
2.117,3
1.354, 8
1.903,7
2.714,5
2.540,0
2.677,4
2.481,6
2.451,4
1.709,5
3.2 Closing balance
2.270,1
2.734,0
2.450,8 ,6
1.530,1

10. Monthly forecasts Structure of forecasts Chapter I: Receipts
Chapter II: Outlays
Chapter III: Budget balance
Chapter IV: Internal sources
Chapter V: External sources
Chapter VI: Changes in budget balance

11. Government Budget Liquidity Forecast May 2017 Approved:
Approved:
Minister of Finance
Ley, in thousands
2017 Budget
1/12 of Annual Budget
Adopted Forecast May
Week 1 Forecast
Week 2 Forecast
Week 3 Forecast
Week 4 Forecast
Week 5 Forecast 1 2 3 4 5 6 7
& 9
I. Receipts ,4 ,5 ,8 ,4 ,7 ,2 ,0 ,5
1. Revenues ,5 ,6 ,0 ,9 ,2 ,1 ,4
1.1. Revenues managed by the State Tax Service ,2 ,7
67.568,0 ,6 ,1
1.2. Revenues managed by the Customs Service ,0 ,0 ,0 ,0 ,0 ,0
1.3. Other revenues ,8
85.365,6
78.068,3
7.926,5
12.433,9
19.874,2
14.270,4
1.4. VAT and excise refunds ,4 ,5 ,3 ,3 ,7 ,1
II. Payments ,3 ,7 ,9 ,5 ,3 ,6 ,4 ,1
2.1. Payroll ,0 ,3 ,6
75.411,2
21.356,8
12.369,7
6.378,5
2.2. Goods and Services ,0 ,0 ,4
25.463,1
23.744,2
36.897,5
41.789,6
21.618,0
2.3. External debt service payments ,0
69.203,4
20.806,2
18.475,8
14.349,8
2.4. Domestic debt service payments ,0
38.375,0
51.035,9
4.268,1
5.610,5
20.092,7
0,0
2.5. Subsidies ,0
54.613,7
2.356,0
37.896,0
11.321,4
3.040,3
2.6. Road Fund ,7
76.000,0
40 000,0
36 000,0
2.7. Farm producers Subsidy Fund ,0
75.000,0
2.8. Social benefits
313400,0
26116,7
22623,1
7.2334,4
3.127,0
6.521,0
4 120,0
1.621,7
2.9. Other payments (allowances, compensations) ,0
143291,7 ,8
3.561,8
7.561,4
9.524,3
81.189,5
9.579,8
2.10. Transfers between government budget and local budgets ,0
682425,1
714466,2
88.630,0 ,0
99.561,5
2.12. Transfers between government budget and Social Insurance Fund ,9
508767,1 ,5
30.000,0
2.13. Transfers between government budget and Mandatory Medial Insurance Funds ,4 ,6 ,0 ,6
2.14. Capital stock ,0
88658,3
58.076,9
52.3
6.233,0
13.122,4
29.563,4
9105,8
2.15. Inventories ,0
72.476,3
178,9
6.524,1
17.593,6
34.554,8
13.624,9
2.16. Other expenditures
4 800,0
400,0
III. Balance (с.4-с.12) ,9 ,2 ,1 ,1 ,6 ,6 ,6 ,4
IV. DOMESTIC SOURCES ,0 ,0 ,0
30.800,0 ,0 ,0
4.1 Transactions in government securities ,0
13.500,0
12.900,0
-5.500,0
30.300,0 ,0
4.2 Government securities as liquidity buffer
4.3 STA liquidity borrowing /reimbursement ,0 ,0 ,0 ,0 ,0
1.4 Other domestic sources
4.3 Borrowing from/reimbursement to National Social Insurance Fund
V. EXTERNAL SOURCES ,0
69.095,9
6.828,1
11 110,5
28.064,6
23.092,7
5.1 Conversions-payments from foreign currency accounts ,0 ,9
7.633,1
23.475,0
53.071,1
27.208,7
5.2 External debt payments ,0 ,0
-805,0 ,5 ,5
-4.116,0
VI. Change in balance ,2 ,0
-3.756,9 ,2 ,3
-44933,4
6.1 Opening balance ,9 ,9 ,8 ,0 ,3
6.2 Closing balance ,7 ,3
Government Budget Liquidity Forecast
May 2017
Approved:
Minister of Finance
Ley, in thousands

12. 02 01 05 03 04 Accumulation of balances by the end of month
Transfers to local budgets 05
Servicing of public debt and other priority payments 01
50 mln leus
($2.8 mln)
200 mln leus
($11 mln)
300 mln leus
($17 mln)
Transfers to the Government Social Insurance budget 02
800 mln leus
($44 mln ) 03
Salaries
250 mln leus
($14 mln)
Transfers to CHI Funds 04
50 mln leus
($2.8 mln)

13. Approved: Director, State Treasury Needs Approved
Approved:
Director, State Treasury
Needs
Approved
I. TOTAL TREASURY LIQUIDITY:
ECO Code
,47
1. Opening balance as of May 31, 2017:
1.1 General government budget revenues, opening balance
,13
1.2 Receipts as of May 30, 2017
,58
1.3 Unallocated balance as of May 30, 2017
,89
2. Income from transactions in government securities:
0,00
II. TOTAL ALLOCATIONS ( )
,10
,92
1.Capital transactions
1.1 Repurchase of government securities
513120
1.2 Interest on government securities
242200
Payments ( )
2. General payments executed by the State Treasury
,92
,92
2.1 Return of receipts of unknown origin
,46
,66
2.2 Transfers of shared revenues to local budgets
,09
2.4 Reimbursement of liquidity borrowed from self-regulated government agencies
2.5 National Bank of Moldova – retention of fees as per Agreement of December 18, 2005
222970
60.257,17
2.7 Fees for bank services provided to territorial Treasury offices
2.8 Moldova Post service fees
2.11 Executive fees
28136;2814
,20
3. Transfers to 1st tier local budgets
2912
,57
,64
4. Transfers to 2and tier local budgets
2911
,34
,52
5. Transfers to Nation Medical Insurance Company
2922
б. Transfers to National Social Insurance Fund
2921
7. Financing of Territorial Treasury Offices
,27
,84
7.1 Payroll
21;
,16
,70
7.2 Allowances
2812
,00
7.3 Social benefits 27
,27
7.4 Energy, communal, and information services
222(1;2;3;94)
,44
,53
7.5 Payments against executive documents
28136,28139,281
34.578,01
7. б Business trips
2227
,40
,88
7.7 Services
222
,20
,21
7.8 Inventories 33
,78
,42
7.9 Capital stock 31
,70
,70
7.10 Government reserves 32
7.11 Other payments
2818;2819;2821;
2829,2811;2815
24.429,00
7.12 Subsidies 25
,98
,98
7.13 Payments financed by budget organizations
3.567,85
7.14 Return of receipts of unknown origin 5
44.323,68
7.15 Other non-financial assets
34;35;36;37
7.16 Foreign currency exchange requests
613000
,80
,61
7.17 Priorities set by budget execution authorities
III. FINAL BALANCE
,55
USD
EUR
Head of Liquidity Management Department:
20,3270

14. Transfers from the government budget to local budgets
are made on a monthly basis in accordance with the Law on government budget, with 1/10 of the annual amount provided during the first six months; and 1/15, during the remaining 6 months.
are made on a monthly basis in accordance with the forecasts and on the basis of payment documents uploaded in the MoF information system, marked by groups according to the functional classification as follows:
Education: NV
Culture, youth, and sports: SP
Social assistance: AS
Road Fund: FD
General-purpose transfers:
Earmarked transfers:
Маркировка переводов позволяет отслеживать балансы фондов ЛБ по группам для сопоставления с потребностями их финансирования и осуществлять переводы из ГБ в объеме, необходимом для покрытия потребностей

15. (public procurement contracts)
Plans for the future
There are plans to introduce
Collection of forecasts from central public administration bodies (ministries and agencies)
Schedule of payments
(public procurement contracts)
Automated forecasting process

16. Thank you for listening
If you have any questions, please feel free to ask