Elections delay enforcing key economic and social reforms

Given the political costs, the present Cabinet is not going to implement any vital reform for the crisis-hit economy, says Valeriu Prohnitchi, the director of an economic think tank called Expert-Grup, Info-Prim Neo reports. As necessary reforms, the expert points out the number of beneficiaries of social assistance, better targeting the social payments. Another priority is the consistent reform of the central public administration. Bettering the state budget expenditures is a third priority. So far it was reduced to cutting the transfers to the local budgets by 20%, although this initiative was not adopted by the Parliament. The reduction was made in the Fund supporting local administrations, not the ones with special destination, what allows to continue infrastructure projects, as building gas and water pipes in the localities where the administrations are politically affiliated to the Cabinet, Expert-Grup finds. The measures of the Cabinet praised by Valeriu Prohnitchi refer to reducing the terms of issuing authorizations and licenses to companies and reducing the administrative regulations related to foreign trade. The administrative pressure over businesses enhanced the last half a year. Police undertook more checkups on companies. This was recognized even by premier Zinaida Greceanai and is confirmed by the level of fines paid by companies. From January to April, they exceeded by 68% the planned indices. And this happens in the wake of falling incomes to the state budget.