The inefficient planning and lack of transparency generate non-credible local budgets. At the same time, the public authorities of Moldova have an insufficient financial potential and low own incomes. These are some of the conclusions of a report on the financial sustainability of the local public authorities, compiled by the independent think tank “Viitorul”, IPN reports.
According to a press release of “Viitorul”, the budgetary process in Moldova does not produce credible budgets. Report author Angela Secrieru considers that the local budgets are planned based on simplistic techniques of forecasting the incomes and spending. “The costs are estimated based on norms that do not take into account the real needs of the communities. Therefore, the local budget is not very credible at local level,” said the expert.
Angela Secrieru noted that the public authorities of Moldova do not have instruments to influence taxpayers so as to make sure that the local taxes are paid. The unsatisfactory financial planning and limited participation of the people in discussing the local budget are among other budget-related problems faced by the local public authorities. In many villages and towns, there are no multiannual fiscal forecasts, while the training and number of financial specialists are at a low level.
The expert recommends ensuring the people’s access to the main budget-related information and increasing the fiscal output of local taxes, developing the competences of local functionaries and specialists and eliminating the formal attitude towards budget planning based on performance indicators.
