The People’s Assembly of Gagauzia on July 26 approved a critical statement addressed to the Government and Parliament of Moldova that changed the mechanism for financing the local public authorities. A number of experts, invited to Publika TV’s program “Fabrika”, said the dissatisfaction of the Gagauz authorities is nothing else but pretense, IPN reports.

Under the Law on Local Public Finances, the budget funds will be transferred directly to the mayor’s offices of villages. The income tax will remain in the local budgets in the amount of 75% in the case of district centers, 45% in the case of the municipalities of Balti and Chisinau, and 25% in the case of district councils and the Autonomous Territorial Unit of Gagauzia. The rest of the money will be accumulated into a special fund from which the villages will be financed directly, without the intermediation of district centers. The local public authorities will decide themselves how to spend the money.

“Expert-Grup” economic analyst Dumitru Budianschi said the new system is aimed at balancing incomes, while the funds to the local authorities will be distributed not based on costs, but on revenues.
 
Former Chisinau councilor Alexandru Corduneanu said the local public administration has insisted on the decentralization of the local public finances for a long time.  However, the system remains the old one.

Mayor of Budesti village Nina Costiuc said the mayors of Moldova daily look for financing. They all want the situation to be improved. “Any proposal that comes from the Ministry of Finance is a move forward. But there is no clarity in this bill and I do not think it will be effective. The fact that new projects are implemented does not mean that the people’s lives change. The current government should ensure greater transparency,” said the mayor.

“IDIS Viitorul” economic expert Viorel Garbu believes the interference in the political factor will be avoided as the process is much easier and the mayor’s offices will receive money directly.