The Party “Dignity and Truth Platform” (PPPDA) proposed that 10% of the total income of legal entities collected on the territory of territorial-administrative units should remain in the budgets of municipalities and district centers, while 25% – in the budgets of towns and villages. A legislative proposal to this effect was presented by PPPDA vice president Alexandru Slusari, IPN reports.
In a press briefing, the MP said such a law is needed as the local budget revenues decreased from 10.5% of the GDP in 2010 to 7.7% in 2018. “This way, the local budgets are the component of the national public budget that has the lowest growth rate in nominal terms, from year to year. At the same time, the share of special destination transfers in the total revenues of the local public authorities continues to increase. This situation leads to the discrediting of the conception of local self-government the Republic of Moldova and, implicitly, to the worsening of the quality of life. The lack of fiscal autonomy is one of the factors that determine the exodus of Moldova’s population. Such a situation can no longer be tolerated, while the necessity of a change in the area of local public finances is essential,” stated Alexandru Slusari.
It is estimated that the law will help the local public authorities increase their revenues by 0.9 billion lei through their redistribution within the state budget. Local self-government will extend and the local communities will be more independent from subjective influence exerted by political forces. The local public authorities and the businesses will develop a dialogue that will lead to the reduction of the underground economy and to the more active involvement of the local authorities in economic development at the local level.
