The 2021 budgetary-fiscal policy package is disconnected from the macroeconomic context of the country.  Moreover, the government intends to diminish the powers of the local public authorities by capping local taxes, considers economic expert Veaceslav Negruța.

“There are two other cases when attempts were made, during the past 4-5 years, to amend the legislation and encroach upon local autonomy and the local decentralization processes, also by capping and listing local taxes. When we speak about the relations between the central and local authorities, there should be maximum freedom for the local authorities to take decisions as to what local taxes to apply. The local council should decide. But the list from which the local authorities must choose should be sufficiently long,” IPN quoted the ex-minister of finance Veaceslav Negruța as saying in the program “Shadow Cabinet” on Jurnal TV channel.  

According to the representative of the Congress of Local Authorities of Moldova (CALM) Alexei Busuioc, the Government’s intentions to impose particular limitations on mayor’s offices will turn against the central public authorities.

“They are trying to throw us back to 2012 – 2011. We are no longer those mayors of 2012. The CALM is not the same. Now the battle will be much harsher. These guys from the upper level do not yet realize. I’m absolutely sure that this time the government will lose the battle with the local public authorities,” stated Alexei Busuioc.

Earlier this year, the Constitutional Court ruled that the provisions on the capping of local taxes are unconstitutional after a number of mayors and representatives of the local authorities said that these provisions affect their budgets. On the other hand, the businessmen pleaded for keeping the caps on local taxes, arguing this would protect them from the abuses of mayors and councilors who promote their own interests.