Moldova Public Expenditure Review : Reforming Local Public Finance for More Efficient, Equitable, and Fiscally Sustainable Subnational Spending

This report reviews intergovernmental fiscal relations in Moldova and recommends ways to improve the efficiency and equity of local public finance, while maintaining fiscal sustainability. Local public authorities are responsible for meeting key pu...

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Main Author:	World Bank
Format:	Public Expenditure Review
Language:	English en_US
Published:	Washington, DC 2014
Subjects:	BUDGET DECENTRALIZATION EDUCATION FISCAL SUSTAINABILITY INTERGOVERNMENTAL FISCAL RELATIONS PUBLIC FINANCE PUBLIC INVESTMENT PUBLIC SERVICES DELIVERY REVENUE ROADS TAXES WATER
Online Access:	http://documents.worldbank.org/curated/en/2014/06/19717169/moldova-public-expenditure-review-reforming-local-public-finance-more-efficient-equitable-fiscally-sustainable-subnational-spending http://hdl.handle.net/10986/19306

id	okr-10986-19306
recordtype	oai_dc
spelling	okr-10986-193062021-04-23T14:03:51Z Moldova Public Expenditure Review : Reforming Local Public Finance for More Efficient, Equitable, and Fiscally Sustainable Subnational Spending World Bank BUDGET DECENTRALIZATION EDUCATION FISCAL SUSTAINABILITY INTERGOVERNMENTAL FISCAL RELATIONS PUBLIC FINANCE PUBLIC INVESTMENT PUBLIC SERVICES DELIVERY REVENUE ROADS TAXES WATER This report reviews intergovernmental fiscal relations in Moldova and recommends ways to improve the efficiency and equity of local public finance, while maintaining fiscal sustainability. Local public authorities are responsible for meeting key public service delivery needs. They play a major role in education and bear primary responsibility for urban and rural functions such as water supply and local road construction and maintenance. But local authorities are unable to fulfill this role due to sub-optimal size, inadequate financial capacity, and low administrative capacity. The Government of Moldova is reforming intergovernmental fiscal relations, as part of broader commitments under the national decentralization strategy (2012). They set new rates for sharing national taxes with the two tiers of local government, introduce formulas for transfers to local governments, and remove subordination in financial relations between top and bottom tiers of local government. This report reviews recent reforms in local public finance and makes suggestions to further improve subnational expenditures, fiscal policy, and budgetary processes. Suggestions are made in five key areas: (i) address the inefficiencies of expenditures related to the high fragmentation of Moldova's administrative-territorial organization; (ii) improve the efficiency and equity of intergovernmental transfer formulas; (iii) help develop the revenue capacity of local governments; (iv) improve public investment management at the local level; and (v) ensure sustainability of subnational debt. 2014-08-14T16:58:20Z 2014-08-14T16:58:20Z 2014-06 http://documents.worldbank.org/curated/en/2014/06/19717169/moldova-public-expenditure-review-reforming-local-public-finance-more-efficient-equitable-fiscally-sustainable-subnational-spending http://hdl.handle.net/10986/19306 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ Washington, DC Economic & Sector Work :: Public Expenditure Review Economic & Sector Work Europe and Central Asia Moldova
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	BUDGET DECENTRALIZATION EDUCATION FISCAL SUSTAINABILITY INTERGOVERNMENTAL FISCAL RELATIONS PUBLIC FINANCE PUBLIC INVESTMENT PUBLIC SERVICES DELIVERY REVENUE ROADS TAXES WATER
spellingShingle	BUDGET DECENTRALIZATION EDUCATION FISCAL SUSTAINABILITY INTERGOVERNMENTAL FISCAL RELATIONS PUBLIC FINANCE PUBLIC INVESTMENT PUBLIC SERVICES DELIVERY REVENUE ROADS TAXES WATER World Bank Moldova Public Expenditure Review : Reforming Local Public Finance for More Efficient, Equitable, and Fiscally Sustainable Subnational Spending
geographic_facet	Europe and Central Asia Moldova
description	This report reviews intergovernmental fiscal relations in Moldova and recommends ways to improve the efficiency and equity of local public finance, while maintaining fiscal sustainability. Local public authorities are responsible for meeting key public service delivery needs. They play a major role in education and bear primary responsibility for urban and rural functions such as water supply and local road construction and maintenance. But local authorities are unable to fulfill this role due to sub-optimal size, inadequate financial capacity, and low administrative capacity. The Government of Moldova is reforming intergovernmental fiscal relations, as part of broader commitments under the national decentralization strategy (2012). They set new rates for sharing national taxes with the two tiers of local government, introduce formulas for transfers to local governments, and remove subordination in financial relations between top and bottom tiers of local government. This report reviews recent reforms in local public finance and makes suggestions to further improve subnational expenditures, fiscal policy, and budgetary processes. Suggestions are made in five key areas: (i) address the inefficiencies of expenditures related to the high fragmentation of Moldova's administrative-territorial organization; (ii) improve the efficiency and equity of intergovernmental transfer formulas; (iii) help develop the revenue capacity of local governments; (iv) improve public investment management at the local level; and (v) ensure sustainability of subnational debt.
format	Economic & Sector Work :: Public Expenditure Review
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Moldova Public Expenditure Review : Reforming Local Public Finance for More Efficient, Equitable, and Fiscally Sustainable Subnational Spending
title_short	Moldova Public Expenditure Review : Reforming Local Public Finance for More Efficient, Equitable, and Fiscally Sustainable Subnational Spending
title_full	Moldova Public Expenditure Review : Reforming Local Public Finance for More Efficient, Equitable, and Fiscally Sustainable Subnational Spending
title_fullStr	Moldova Public Expenditure Review : Reforming Local Public Finance for More Efficient, Equitable, and Fiscally Sustainable Subnational Spending
title_full_unstemmed	Moldova Public Expenditure Review : Reforming Local Public Finance for More Efficient, Equitable, and Fiscally Sustainable Subnational Spending
title_sort	moldova public expenditure review : reforming local public finance for more efficient, equitable, and fiscally sustainable subnational spending
publisher	Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2014/06/19717169/moldova-public-expenditure-review-reforming-local-public-finance-more-efficient-equitable-fiscally-sustainable-subnational-spending http://hdl.handle.net/10986/19306
_version_	1764443600213508096

Moldova Public Expenditure Review : Reforming Local Public Finance for More Efficient, Equitable, and Fiscally Sustainable Subnational Spending

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