Budget transparency contributes to increasing budget revenues. Owing to the people’s confidence that the public funds are spent transparently and efficiently, these will be motivated to pay taxes, which helps diminish the underground economy, Diana Enache, economist of the Institute for Development and Social Initiative “Viitorul”, was quoted by IPN as saying in the program “15 minutes of economic realism”. She noted the level of transparency of the budgetary process is at a low level, of 37.7% of 100% on average, IPN reports.
The economist noted 42% of the 60 assessed localities didn’t discuss the draft budget at debates and the public wasn’t familiarized with this. The budget rectification stage also lacks transparency and a significant discrepancy between the value of the approved costs and the executed costs appears at some categories of spending. Particular costs are redirected from one category to another without consulting the people.
“It is important to break the vicious circle through which, on the one hand, the authorities say they are open, but the people do not become involved. On the other hand, the citizens do not become involved, arguing they are not sufficiently informed. The authorities should respectively realize that transparency means not only publication of information, but also ensuring of active, correct and timey informing. This way the people will be motivated to take part in the decision-making process, implicitly the budgetary one,” stated Enachi stated.
She noted the national legislation governs transparency in decision-making and the budgetary process. The public authorities are obliged to ensure transparency at each stage of the budgetary process. Moreover, under the Association Agreement with the EU, Moldova pledged to ensure an efficient, participatory and transparent decision-making process and to increase civil society’s participation in decision-making, especially by establishing an open, transparent and permanent dialogue between the public institutions and civil sooty, implicitly the people.
Diana Enache also said that budget transparency is a complex process. The authorities and the people should make concerted effort for the budgets to be open, transparent and participatory. The people will take part in the process of adopting budgets when the authorities ensure transparency, active, correct and timey informing and accessible and comprehensible instruments.
