World Bank representatives discussed fiscal decentralisation in Chisinau

Chisinau, 17 June 2013. Visitors from the World Bank (WB) discussed, today, in Chisinau, the new system of local public finance, and other aspects of fiscal decentralisation.

Mame Fatou Diagne, an economist at the World Bank's main office in Washington DC, USA, and Marcel Chistruga, an economist at the World Bank office Moldova, met with Victoria Cujbă, the head of the decentralisation policy Division of the State Chancellery, and Adrian Ionescu, Chief Technical Adviser with the Joint Integrated Local Development Programme (JILDP) to discuss the Moldovan Government's priorities in the field of decentralisation and the current stage of promoting local financial autonomy.

The WB visitors requested the meeting as part of the preparation of the World Bank's 2013 annual Public Expenditure Review. During the meeting, Victoria Cujba described the advantages of the new local finance system as provided in local public finance law, amended, on 13 June, in a first reading. Adrian Ionescu gave further details about the new financing system, especially how revenues witll be shared, and the new formula for financing municipalities.

WB economists were informed about other packages of legislative amendments pertaining to the decentralisation reform, which are currently prepared by the State Chancellery and the Joint Programme.

Mr Diagne and Chistruga were interested to learn which aspects of the decentralisation reform - particularly in the field of policy advice - required additional support for implementation. Participants exchanged opinions on the next priorities in fiscal decentralisation, including strengthening the local government capacity in local financial management as per the new legislative requirements.

The sides also discussed the constraints and options for administrative-territorial structure of the Republic of Moldova, and the sectoral decentralisation strategies in education, social services, utilities and property decentralisation. The sides emphasized the importance of clarifying the status of the property and its registration at the Land Office.