Four territorial-administrative units – Chisinau municipality and the districts of Rascani, Ocnita and Basarabeasca – shift to financial autonomy from this year. This means that the system of general allocations to the budgets of these units will be based on revenues, not on average costs per capita assessed at central level.
Head of the Finance Division of the Ocnita District Council Constantin Gudima has told IPN that the new law will enable the 21 mayor’s offices of the district to spend more money on administration, culture and territorial development. “These mayor’s offices have nothing to lose if they use the new financing system. Only the district budget will be affected. Its spending will be adjusted to the real possibilities in two years,” said Constantin Gudima.
The new system piloted in the four territorial-administrative units increases the responsibility of the local authorities in collecting own incomes from land taxes, public property and land rent. As to the risks, Constantin Gudima said the public authorities may be unable to generate and collect incomes and the expenditure will be thus not augmented.
The bill with amendments to the Law on Local Public Finances was passed by Parliament in November 2013. In 2014, the law takes effect in three districts and in the municipality of Chisinau. In the other territorial-administrative units, the changes will come into force in 2015.
