The revenues of LPA (local public administration) will increase next year, mentioned the Minister of Finance, Natalia Gavrilița, presenting the approval of the Government on a draft to amend the Law on public finances, submitted by MP Petru Frunze, IPN reports.

The MP proposes to increase the revenues of LPA through a new redistribution of taxes on the incomes of natural persons and legal entities, as well as establishing the transfer of the tax on natural persons, according to their place of residence.

"It is necessary to strengthen the financial autonomy of LPA, but we must start from the existing budget space, the real space. Therefore, we came up with the proposal to accept, at the first stage, the quotas for the breakdown of the tax on natural persons in a 100% proportion for the LPAs of the first and second levels, and for cities and municipalities – in a proportion of 50% (currently 35 % - ed. n.), "said Natalia Gavrilița.

The impact of the proposed initiative, only in the part related to the income tax on legal entities (increasing the Fund for financial support to the administrative-territorial units and breakdowns to first level local budgets in proportion of 25% of the receipts from this tax), for the year 2020 constitutes 1 257.4 million lei.

Also, the 100% increase in the breakdown quotas from the income tax on natural persons to first level local budgets has a negative impact on the receipts from this tax in the district budgets. For 2020, these losses are estimated at 126.6 million lei.