Chisinau and Balti Warn of Local Budget Losses From 2027 Tax Plan
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Chișinău and Bălți Calculate the Damage Caused by Tax Policy – 2027

The city administrations of the two capitals have assessed the financial impact on local budgets of the Ministry of Finance’s proposals included in the draft budget and tax policy for 2027. They warn that local authorities will be unable to perform their functions and fulfill their responsibilities to citizens to the same extent with drastically reduced budgets.
Tatiana Sichirliiscaia Reading time: 1 minute
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a city in Moldova

They pointed out the lack of detailed calculations from the Ministry of Finance and, in turn, presented their own figures, based on the 2026 budget projections.

Chișinău

Thus, the capital city’s municipality estimated the losses from the property tax. Specifically, revenue is expected to decline from the 3.29 billion lei planned for 2026 to approximately 2.47 billion lei in 2027.  Net losses are estimated at 822.4 million lei.

Losses from the advertising tax due to the reduction of the rate from 6.4% to 3% will lead to a decrease in revenue of approximately 4–5 million lei per year.

As for the placement tax, the loss is estimated at 25–27 million lei per year due to the reduction of the current rate from 5.8% to 3%.

Bălți

For the municipality of Bălți, the proposed changes to the personal income tax will result in a reduction in revenue from 254.8 million lei to approximately 191.2 million lei, representing a direct loss of 63.6 million lei.

In addition, setting an upper limit of 3% will result in a reduction in revenue from the advertising tax of 43,600 lei and from the placement tax of 320,000 lei.

Representatives of the two municipalities warn that any reduction in local governments’ own-source revenues, imposed at the central level, will lead to the suspension of local infrastructure projects (street lighting, road repairs, transportation, school repairs, and maintenance of green spaces).


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