The so-called Supreme Soviet of Tiraspol extended the state of emergency in Transnistria’s economy for another month on Wednesday, July 9, citing the ongoing crisis caused by limited gas supplies and reduced budget revenues. Deputies decided during the second extraordinary session, IPN reports.
Authorities extended emergency measures introduced nearly eight months ago on the left bank of the Dniester River. After the session, Alexander Korshunov, head of the Supreme Soviet, confirmed that they imposed strict austerity measures across all state and municipal institutions.
“All state and municipal bodies now operate under strict austerity. We have drastically reduced expenses in key areas, including road and environmental funds, capital investment budgets, and the fund for voter requests. We postponed all planned projects for 2025 indefinitely,” Korshunov announced.
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He acknowledged that authorities would implement unpopular decisions, including reductions in state programs and the redistribution of scarce resources.
On the eve of the vote, officials convened an extended economic meeting with the legislative and executive branches’ members. During the session, the so-called government commission on economic stabilization presented proposals for cutting expenditures and reallocating budget funds.
Authorities confirmed that they are revising the current budget and drafting a new one for 2026. However, they admitted that external pressures and unstable revenues hinder their ability to make accurate forecasts. Officials stated that they will prioritize meeting minimum social obligations to the population.
Earlier, the administration admitted its inability to implement the current budget. Authorities reported a 43% drop in industrial production and a 31.5% decline in foreign trade. They projected a 12% drop in GDP by 2026 and forecast inflation to reach 16%.
To cope with shrinking revenues, Tiraspol introduced a staggered salary payment system for government employees. Starting July 1 and continuing through the end of the year, institutions will pay salaries in two installments each month: the first by the 20th and the second between the 21st and the end of the month.
Local administrations must now return any remaining local funds to the central budget.