No decentralization can exist without financial decentralization

Yesterday, the meeting of the Working group on financial decentralization took place. The session was chaired by Veaceslav Negruţa, the Minister of Finance, and the Chairman of the working group.

The decentralization of power and the assurance of the local self-government are among the strategic priorities of the current Government and represent one of the objectives defined in the document "Rethink Moldova", presented to the development partners in Brussels.

The working group on financial decentralization includes the representatives of the local governments (LG), State Chancellery, Ministry of Finance, Ministry of Education and the Ministry of Labour, Social Protection and Family. The members of the working group, assisted by specialized experts, will analyze the current situation in the field of public finance and will develop a set of proposals on financial decentralization in order to subsequently include this in a decentralization strategy and a concrete step-by-step action plan that will be subject to consultations and debates.

"We rushed into a very ambitious project that is called decentralization, the goal of which is to offer better quality public services, at a lower price, along with the modernization of the structures that provide these services", Veaceslav Negruţă said at the beginning of the meeting. According to the Minister of Finance, no decentralization can exist without financial decentralization, because the delegation of competences to the local government would have a useless effect without the establishment of a clear and functional mechanism of financial coverage.

Victoria Cujba, the representative of the State Chancellery in the working group on financial decentralization, the Deputy Head of the Division for Decentralization Policies, mentioned, within the meeting, about the launching of the activity of Parity Commission on Decentralization that has the mission to coordinate the decentralization process. Like this, the Parity Commission on Decentralization approved the creation of four working groups and of one group on strategic coordination in the following formula:

  • working group on organization and functioning of the local public administration authorities;
  • working group on decentralization of services and competences;
  • working group on financial decentralization;
  • working group on patrimonial decentralization.

These working groups will develop the decentralization plans on sectors and areas, identifying the priorities and stages of the decentralization.  

In the process of implementation of the decentralization reform, the Government is assisted by the development partners, especially, within the Joint Integrated Local Development Programme (JILDP).

Margareta Pertruşevschi, the public policy adviser and manager in the Joint Integrated Local Development Programme / UNDP Moldova, said that the working groups, within their activity, will benefit from international expertise, recommendations and proposals from national and international experts.

During the meeting, Sorin Ioniţă, the international expert, presented the European experience in the field of decentralization and the conceptual framework of decentralization of the public finance. As well, Angela Secrieru, the local consultant, identified the introductory problems related to this field.

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