[Info-Prim Neo article from the series “2011: how it was and how it wasn’t”] {Chisinau with accomplishments, failures and prospects – municipal budget} The 2011 budget of Chisinau municipality will be 95% fulfilled, according to the assessments presented on December 1. The Communist faction on the Chisinau Municipal Council (CMC) is skeptical that the budget will be fulfilled, the main reason being, according to them, the inefficient administration by the executive power headed by Mayor Dorin Chirtoaca. [The figures were increased at the insistence of local councilors] The budget provides for incomes of 1.889,8 billion lei and an expenditure of 1.310, 4 billion lei. The final figures are higher than those projected initially by the General Finance Division. According to deputy mayor Mihai Furtuna, the planned revenues were not collected because some of the councilors insisted on adopting an exaggerated budget. General Finance Division head Veronica Herta said that the municipal budget should have been correlated with the state budget, after it was approved on March 31. “The Chisinau budget was approved taking into account that 73.5 million lei was to be transferred to it from the state budget. But it was later decided that no money will be transferred to Chisinau municipality. For the first time this year, the municipality received no money from the state budget. The same will happen in 2012,” she said. [The incomes should be increased, but not by raising taxes] The councilors of the Communist Party, who hold a majority on the CMC, consider that the budget must be socially-oriented in continuation. The revenues should be increased, but not by raising taxes. A series of consistent steps should be taken, like creating a favorable environment for the social and economic development of the municipality, ensuring the efficient financial administration of the municipal property and combating corruption. Asked to state the Communist faction’s position, councilor Vitalie Sacara said the situation is complicated. There is not enough money for the spending planned in education, healthcare, social services, culture, the housing sector, transport, infrastructure development and maintenance. “It is clear that the 2011 budget will not be fulfilled. I think the main reason is the inefficient administration of the municipality by the executive power headed by Dorin Chirtoaca, who deals with populism instead of managing the city. Chirtoaca asks the people how they should decorate the fir tree, but does not ask their opinion when he proposes increasing the tuition fees in the municipal painting and music schools and the parking taxes,” said the councilor. According to him, the decision to increase the public transport fares is an example of inefficient administration. After the fares were raised, the number of passengers decreased and the goal of ensuring the self-financing of the transport companies wasn’t achieved. The Urban Bus Company and the Electric Transport Company are financed from the municipal budget with over 100 million lei. Mihai Furtuna said in this connection that the incomes cannot rise by themselves. They can be levied if the taxes are put correctly, in accordance with the realities. According to the deputy mayor, they will manage to collect the planned taxes by the end of the year, through the general divisions and in cooperation with the State Tax Inspectorate. It will be more difficult to levy the taxes from the salaries of private individuals. [Finances depend on political atmosphere] The finances also depend on the political processes that take place in Chisinau municipality, said Vitalie Sacara. “The blocking by the mayor and the AEI councilors of the work of the CMC has a negative impact on the business environment, the attraction of investments and the whole economy of the municipality. There are also many other reasons,” said the councilor. According to Vitalie Sacara, only the CMC can make changes to the budget. The previous Council allowed the mayor to make amendments only within one chapter. For example, if the Education Division did not put to good use 100,000 lei, the mayor has the right to reallocate these funds for other purposes, but only in the education sector,” he said. He also said that Dorin Chirtoaca, instead of convening the Council to discuss the issue and obtain a decision, abuses his power and makes orders to redistribute the money for different needs. Veronica Herta said attempts will be made to convince the councilors to vote the 2012 municipal budget in the proposed form. “I’m sure the executive’s position will be understood and approved by the Council,” she stated. The 2012 budget produces for revenues of 2.39 billion lei, up 26.9% on 2011, and for an expenditure of 2.61 billion lei, an increase of 13%. [Elena Nistor, Info-Prim Neo]