- Plus 50 percent of the GMMI for every child with disability;

- Plus 10 percent of the GMMI if the adult with disability is the only adult in the family.

When calculating the available global income for the applicant family, a number of sources of income are partly or entirely not accounted for, including:

- State financial support provided to the beneficiaries of social pensions or allocations in the amounts not exceeding MDL 1,500;

- MDL 200 from the wage declared by every employed person in the applicant family;

- MDL 200 from the child benefit for every child in the applicant family;

- Material support provided to the vulnerable persons from the applicant family from the local budgets or from the republican fund for social support of the population;

- For the families composed only of work-unable persons (children, adults with disabilities, persons aged above 75 years (62 for the aid for the cold period of the year)) – income derived from agricultural activities.

As of April 1, 2018, the GMMI has been established in the amount of MDL 1,025, up from MDL 961 in 2017. The increase follows the annual indexation based on the CPI index for the previous year (106.6 percent in 2017).

# **2.5. In-kind benefits: Health and education**<sup>**3**</sup>

CEQ’s analyses of the distribution of government expenditures on education and healthcare are based on the BOOST databases,<sup>4</sup> along with other official sources of public finance data (e.g. budget execution reports of the National Health Insurance Fund). The BOOST data represents a comprehensive source of information on the finances of local governments in Moldova. BOOST dataset is compiled based on the raw data extracted from the national Financial Management Information System (FMIS). A typical BOOST consolidates the raw data into one single, coherent database that can be analyzed along various budget dimensions – administrative levels, functions, costing items, activities, programs, budget entities, as well as sources of financing of government expenditures.

About 18% of general government spending in 2017 or MDL 9.681 billion went to the provision of education in the country, while public spending on health care absorbed 13% or MDL 7.268 billion of total government spending in the same period (see Table 5). The lion’s share of education expenditures is channeled through the budgets of local governments, which collectively account for more than 3⁄4 of total spending, according to the 2017 sector execution data, with the remainder being channeled through the State budget. On the contrary, health care expenditures are more centralized with 86% of health care spending being directed through the National Health Insurance Company (NHIC). Meanwhile, the State budget accounts for about 12% of total spending on health, with the remaining of 2% going to local governments.

**Table 5. General Government Expenditure by Function and Level of Government, 2017.**

|**General Government Expenditure**|**SSFs**|**State**|**Local**|**Total**||
|---|---|---|---|---|---|
|National government functions||4,464,949|1,241,620|5,706,569|10%|
|Defense||557,406|10,854|568,260|1%|
|Public order, safety and judicial authority||4,021,082|20,387|4,041,469|7%|
|Economic activity||4,069,536|1,355,277|5,424,813|10%|
|Environmental protection activity||92,164|54,514|146,678|0%|
|Housing and municipal economy||175,962|1,139,399|1,315,360|2%|
|Healthcare|6,260,800|866,589|141,300|7,268,689|13%|
|Physical and intellectual development system||497,119|836,333|1,333,453|2%|
|Education||2,223,457|7,457,922|9,681,380|18%|
|Socialprotection and social securitysystem|17,614,500|445,538|1,003,173|19,063,211|35%|
|**Total**|**23,875,300**|**17,413,803**|**13,260,779**|**54,549,881**|**100%**|
|healthcare % of GG expenditure|86.1%|11.9%|1.9%|100.0%||
|education % of GG expenditure||23.0%|77.0%|100.0%||

Source: Moldova BOOST data.

3 This section was prepared by Irina Capita.

> 4 The analysis relies on two BOOST data sets for Moldova – the core BOOST database available on the Ministry’s of Finance website, available at <u>https://mf.gov.md/en/buget/transparen%C8%9Ba-bugetar%C4%83/baza-de-date-a-cheltuielilor-publice, and the Health</u> Moldova BOOST data set developed as part of the 2018 Health Public Expenditure Review for Moldova.

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