On March 26 and April 21, 5 communities from south of Moldova discussed about financial resilience at the local level – a topic of great importance for local development. The exercise took place within two working sessions organized with the involvement of 66 representatives of Local Coalitions and Local Public Administrations from Baurci, Vulcanesti, Ceadir Lunga, Tomai, and Gaidar, ATU Gagauzia.
During both sessions, the expert in economics, Mr. Veaceslav Ionita presented the financial and logic structure of forming a local budget considering both the legal framework in the Republic of Moldova and certain realities not regulated by law. Within the 2 working sessions, there were discussed issues related to certain blockages that delay or make financial resilience impossible at the local level.
Mr. Ionita also highlighted a series of achievements in the field of local resource management, one of which being the local administrative resource. The management of financial, patrimonial and administrative assets was also discussed. The participants addressed the issue of illegal parking, certain methods of legalizing them, the efficiency of revenues from sanitation taxes and the pitfalls of incompetent administration that block the community development.
Mr. Ionita mentioned about the revolutionary model for the Republic of Moldova that aims at local development through the municipal obligations system, issued by the administrative territorial units. The municipal obligations are a forward-looking tool for attracting the necessary resources for a variety of community development projects.
“The serious problems that form a deficit in the local budget remain the collection of local tax debts and those for community sanitation. But a perspective with great financial potential is represented by the legalization of parking spaces in the community.” – Veaceslav Ionita, expert in economics.
“We have already the answer to the problem of illegal parking in our town. Service providers are offered 2 options: the first is to buy the buildings adjacent land where they work and develop it as a parking lot or to rent the adjacent land for parking places. This model allows us to improve the revenues to the local budget and to solve the problem of illegal parking in the city.” – Anatolii Topal, Mayor of Ceadir Lunga.
The events were organized by the Institute for Rural Initiatives (iRi) as a regional partner in the implementation of the program “Inform, Empower and Act! Civil society for good budgetary governance in the Republic of Moldova”.
The project “Inform, Empower and Act! Civil society for good budgetary governance in the Republic of Moldova”, is implemented by “Expert-Grup” Independent Think-Tank, as lead partner in consortium with the Konrad Adenauer Stiftung Foundation e.V. (KAS, Germany), the Institute for European Policies and Reforms (IPRE) and the Eastern European Studies Center (EESC) from Vilnius, Lithuania. The project is implemented with the financial support provided by the European Union and Konrad Adenauer Stiftung e.V.