Energy aid may force cuts to other spending in Moldova
Moldova may cut spending in other areas to finance energy compensation during the 2026–2027 cold season if the government fails to secure additional funding from international partners, Prime Minister Vasile Tofan said.
External funding sought for winter aid
The government has set aside 550 million MDL (approximately €27.2 million) for compensation payments in the final months of 2026. Most of the costs will fall on the 2027 state budget, with total spending expected to exceed the approximately 2.4 billion MDL (approximately €118.8 million) allocated during the previous cold season.
“We are currently working with donors to identify additional sources of funding. If we cannot find the money, all compensation payments will come from the national budget, so there will be a fiscal impact,” Tofan said during the Raport podcast.
Ministries face tighter spending limits
Financing the compensation programme is complicating preparations for next year's budget, as ministries have requested more money than the government can afford. Tofan acknowledged that meeting the cost of energy aid could require cuts in other areas and measures to eliminate wasteful spending.
The government expects state budget revenue to exceed 90 billion MDL in 2027, up from approximately 80 billion MDL in 2026. However, the projected increase will not cover all funding requests submitted by ministries.
“We need to reduce spending and live more within our means. Unfortunately, expenditure is growing faster than revenue, which means we have to cut it,” the prime minister said.
Applications expected to open on November 2
The government plans to open registration for the 2026–2027 energy compensation programme on November 2. Authorities will announce further details at a press conference, while the final number of eligible households will depend on the applications received.
Compensation amounts will be calculated according to each household's energy vulnerability, using a formula developed with the United Nations Development Programme (UNDP).
Firewood users to remain eligible
Nearly half of the households receiving compensation use firewood for heating, according to Tofan. The prime minister said the price of a stacked cubic metre of firewood had remained relatively stable at around 1,600 MDL, limiting the increase in heating costs for these households compared with consumers using natural gas or district heating.
“We will provide compensation for those households as well. Where the impact is greater, particularly for gas and district heating users, the compensation may matter even more,” Tofan said.
The government expects the number of households receiving assistance to exceed last season's total, although the final figure will only be known after registration.
Translation by Iurie Tataru
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