Budget transparency level in Moldova remains unchanged, experts say

Chisinau, 20 July /MOLDPRES/ - The level of budgetary transparency in Moldova has not changed in recent years, largely due to political factors. The budget transparency index in Moldova in 2015 was 59 out of 100 and remained at the same level as the index presented in 2012, according to a study by the Expert-Grup Independent Analytical Centre.

Budgetary transparency is evaluated according to the way in which information from budget documents is disclosed, the level of citizen participation in the budget process and the power of supervisory institutions. Although, in general, the Budget Transparency Index remained unchanged against the level in 2012, the surveillance "power" of the parliament went from "strong" to "moderate", and the Chamber of Auditors, even though it lost a few points, maintained its "strong" qualifier, experts say.

The delay by two years of the approval of the Law on public finances and fiscal responsibility hampered a more positive assessment of this index.

Expert-Grup recommends formulating an express policy with measures to increase budget transparency at the level of the government, Chamber of Auditors and parliament. Technical measures are also needed to increase the opportunities of informing the population and make budget documents easier to understand. Publication of the 2015 Citizens’ Budget was a first step in establishing communication with the general public in an accessible language, and the continuation of this practice is highly welcomed.

Experts recommend including a separate chapter in the budget proposal, containing data and narrative arguments on transfers, subsidies and state aid to public enterprises. To identify budgetary risks and anticipate shocks to the public finances, specialists recommend developing a budget based on the analysis of more macroeconomic scenarios. The Chamber of Auditors should also present in the parliament a report on the government’s implementation of the recommendations, in addition to an audit report on budget execution, reads the study.

(Reporter V. Bercu, Editor L. Alcaza)