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Draft budget for 2005 took the central stage during the aforesaid period. As usual deputies heard Minister of Finance and Minister of Economy; raised a number of questions. Later on, leaders of Parliament factions voiced their own positions on the draft.

Opposition pointed the lack of a sustainable strategy of economic development, whereas majority faction criticised insufficient funding of certain fields such as education and agriculture. Further, while opposition considered little funds were allotted to social sphere, majority faction on the contrary stated that funding to these areas rose considerably. Finally, following a tradition already, opposition factions refused voting the draft.

I. Draft Law on State Budget for 2005

ADEPT Comment: The draft budget was passed in the second reading. It envisages an economic growth for the upcoming year with a GDP worth 36.5 billion Lei, as compared to 27.3 billion Lei in 2003 and an estimated 31.9 billion Lei in 2004. Economic growth shall be sustained in 2005 by ensuring macroeconomic stability, by boosting entrepreneurship, in particular:

• Industrial growth worth 23.1 billion Lei, a 13% growth over 2004, while agriculture would grow by 7.8% as compared to 2004;
• Increasing exports and gradual change of their structure by 180 million Lei as compared to this year; volume of imports covered by exports would surge from 57.7% estimated for this year to 5 8.2% in 2005;
• Gradual depreciation of the MDL from 12.4 MDL/USD in 2004 to 12.7 MDL/USD in 2005;
• Surge in the population's income by 10% yearly;
• Gradually reducing fiscal burden and extending the taxation base recently established by the Parliament in the Law no.224-XV of July l, 2004;
• Boosting foreign and domestic investments;
• Adjusting fiscal laws to European standards.

II. Law on Facilities for Investments

ADEPT Comment: Via the said law, Parliament operated amendments to legal acts regulating enterpreneurship, so at to equal in rights foreign and domestic investors and establish favourable conditions for their operation.

In particular the law includes provisions on:

1. Customs facilities - exemption from the payment of the value of goods imported as to form and/or increase registered capital of the enterprise.

2. Fiscal facilities - exemption from the income tax (50%-100%) depending on the contribution to the registered capital of the enterprise;
- exemption from VAT of fixed assets that are part of the registered capital.

3. Privatisation facilities - granting equal opportunities on paying for privatized units.

Deputies rejected Government proposition to allow foreign investors to purchase and hold in their property agricultural plots.