Local authorities should be more aggressive when looking for financial resources, analyst

The 2011 state budget will not cover all the projected reforms. The main problem is the enormous economic and financial polarization between the center and the peripheries, economic analyst Iurie Gotisan, of the Association for Participative Democracy (ADEPT), has told Info-Prim Neo. “The Chisinau budget for 2011 is about 1,9 billion lei, while the state budget – 1.9 billion lei. Thus, the municipal budget represents about 10% of the state budget,” said the expert. Iurie Gotisan stressed that over 60% of the local revenues are directed to the central budget and the local authorities have limited resources available. It is practically impossible to allocate the rest of the money for the repair of roads, kindergartens or schools. Financial and fiscal decentralization is needed as the economic and financial polarization between central Moldova and the peripheries is enormous. Over 50% of the country's Gross Domestic Product is formed in Chisinau. More than 60% of the companies are concentrated in Chisinau. According to the ADEPT expert, the local public administrations should change the methodology of using the public finances. They should be more aggressive when looking for financial resources. There are different types of organizations that may provide money, but the local authorities should propose well thought out plans and rational financial offers.