The Study on the local public finance in the financial decentralization perspective in Moldova was presented

The study was prepared by the IDIS "Viitorul" experts, being contracted by the Joint Integrated Local Development Programme in the context of development of the Decentralization Strategy and contains an analysis of the local public finance system, identifies the constraints that limit the local financial autonomy and expresses recommendations in the context of the financial decentralization approach initiated by the Government of the Republic of Moldova.

As well, the need for financial decentralization for the Republic of Moldova is argued in the study, the macro-fiscal implications of the financial decentralization are assessed, the local public expenditures, the own revenues of LPAs, the transfers and the shared taxes, the issue of the local environmental funds, the local borrowing are analyzed in terms of the impact on the local financial autonomy.

According to Angela Secrieru, one of the authors of the study, a well-designed fiscal decentralization, including the distribution of the expenditure responsibilities, the allocation of revenue sources for the subnational governments, the intergovernmental fiscal transfers and the local debt policies, can help reduce poverty. Angela Secrieru also mentioned that under the conditions when the central government is unable, for objective and subjective reasons, to increase the size of public spending in order to provide diversified, qualitative and at reasonable costs public services, it becomes necessary and appropriate to broaden the localization processes in the Republic of Moldova, including through fiscal decentralization and by attracting the private sector to deliver public services.