Rising energy costs force Moldova to cut state spending

Moldova is poised to implement fiscal retrenchment measures as it confronts an escalating energy crisis, fuelled by soaring gas and electricity prices in the wake of the suspension of Russian gas transit through Ukraine.

The government has instructed all state institutions to implement austerity measures aimed at reducing expenditure, Logos Press reports.

Under the directive, each agency must cut its planned procurement for 2026 by at least 10%. The requirement applies not only to future purchases but also to existing contracts, which may be revised or cancelled where necessary.

Implementation of the measures will be overseen by the Public Procurement Agency, which is tasked with submitting weekly reports to the Ministry of Finance. In addition, ministries and central government bodies are required to reduce overall spending and cut the number of official vehicles by no less than 20%.

Authorities warn that intermittent disruptions in energy supplies from European providers are further compounding the crisis, leaving the government with little choice but to tighten fiscal discipline across the public sector.

By Vafa Guliyeva