The financial autonomy of the local public authorities (LPAs) will be strengthened. A bill to this effect was passed by Parliament in the first reading on June 13. It forms part of the plan of action for implementing the national decentralization strategy for 2012-2015, IPN reports.
Minister of Finance Veaceslav Negruta said the strategy envisions improving the current system of local public finances so as to ensure the autonomy of the LPAs by maintaining financial discipline, maximizing efficiency and ensuring equity in the allocation of resources.
Under the strategy, the system of transfers with general purpose to the budgets of the territorial-administrative units will be based on revenues, not expenditure. The current method of determining the average budgetary expenses per capita will be abandoned. No financial relations of subordination will exist between the budgets of the territorial-administrative units of the first and second levels.
