Boost of fiscal control in consumption sector – fever syndrome of national economy. Economic Commentary by Info-Prim Neo

The wave of controls, creation of fiscal offices near economic agents as announced by the General State Fiscal Inspectorate proves, besides the desire of the state to uproot fiscal dodge, the fact that the Government confronts with serious problems as regards covering planned expenses. The surplus of cashing, which is mentioned by the Ministry of Finance at the beginning of the wine crisis, apparently could not cover the whole growing in the chapter of incomes. The small sells and lights redirection of the wine-making industry are still providing with poor incomes. Therefore, a significant part of the crediting debts expire, even if their paying term was revised. At the same time, the industries related to the wine one did not manage to totally overcome the shock yet. All these facts result in small fiscal incomes in these sectors. The problem is however even more serious – the regress is not peculiar only to the sectors directly affected by the problems occurred in the external trade, but to the entire industry. On the whole, the real economy of Moldova has significant internal problems which affect the fiscal incomes. Achievements can be seen only in the service providing sectors – telecommunications and transport, as well as the financial field represented, in this case, by the banking system. According to the experts, a developing financial sector on the background of a general regress should at least be a ground for debates, because it shows contradictory evolutions. About the fact that “the body of the economy” is not totally healthy, speaks even the way the controls and fiscal offices are organized. The incomes of the gas station, bills in restaurants and bars, in the retail commercial networks etc are controlled. In other words, the state wants to complete its incomes from the most secure source, which is constantly growing in the last years – consumption. Indirectly, the Government recognizes that the other sectors of the economy, the internal production, is not ensuring a high budgetary income, and the only field which for the moment moves on is the consumption one, which is supplied by the remittances and backed by imports. This is how the state crams the budget – taxes applied to consumption imports and final consumption taxes. It is the right of the state to force those who have incomes to correctly pay taxes, but grounding only on the consumption sector financed by external incomes is not providing with a sustainable growth. The Fiscal body should be very attentive in its actions, because a possible exaggeration could discourage many persons and in this case the result will be totally different – the sources of fiscal incomes will lessen. The Government should continue collecting money from consumption sector, but it should more rapidly reform the economy, facilitate the modernization of the producing sectors and obtain international quality certificates. In the end it should increase the productivity of work up to the level which could allow the national economy to easily compete on the world market. The poor productivity of the work is one of the main diseases of the Moldovan economy. The Government should recognize this fact and afterwards immediately change the situation.