Good News for Local Governments

The local government reform in Moldova has been heavily criticized by Council of Europe institutions such as the Parliamentary Assembly and the Congress of Local and Regional Authorities. The major compaint is that after 15 years of reform, the local governments still rely heavily on transfers from upper tiers of government which limits local autonomy significantly. Oftentimes, local revenues raised within the boundaries of the locality are insufficient to cover even the administrative expenses of the mayor's office.

The key problem rests with the legislation. Finally, the legislation is soon to be improved, and the major shortcomings will be eliminated. The Parliament has already adopted the draft new law on local public finances in the first reading. I have read the new piece of legislation, and, in my opinion, it contains important provisions that can lead to an increased financial autonomy of local governments.

This is to be continued in the next Parliamentary session which will take place in October.