The Republic of Moldova will benefit from an additional budget support of $ 3 million, following the modification of the Financing Agreement between the Republic of Moldova and the International Development Association and the Loan Agreement between Moldova and the International Bank for Reconstruction and Development, which supports the Government reform in tax administration area. A draft law to this effect has been adopted by Parliament in two readings, IPN reports.
The Ministry of Finance states in a press release that the decision was taken to restructure the project by amending the agreements. Under the amendments that were signed on August 2, in Chisinau, the project components are restructured by revising the amounts granted to each component of the project and by introducing a new component. It is about financing based on results - responsible for carrying out actions to support fiscal policies, reforming the tax administration and its operational development, without impacting the financial management arrangements of the previously negotiated project.
"It is important to mention that during the years 2017-2019, the Ministry of Finance and the State Tax Service have succeeded in carrying out the actions proposed through the respective competence, as a result of receiving technical assistance provided by external partners, which has made it possible to save financial resources in the amount of about $ 3 million and, respectively, their redistribution as budgetary support”, declared the Minister of Finance, Natalia Gavrilița, from the Parliament's rostrum.
The proposed amendments aim to increase the performance of the project and ensure the development objectives, as well as to better align the project with the current activities of fiscal modernization of the State Tax Service, including by modernizing the infrastructure of the IT system of the institution. Thus, support will be provided for the purchase and installation of an integrated tax administration system, including the provision of relevant hardware and software and the organization of trainings, managerial reporting tools and document management.
The financing agreement between Moldova and IDA and the Loan Agreement between Moldova and IBRD entered into force on December 16, 2016 and are treaties that support the Government's reform program by financing the project for modernizing the tax administration. The financing agreement with IDA provides for a loan of 5.3 million special drawing rights (SDR), and the Loan Agreement with IBRD -$ 12.58 million.
