Local Government Reform Should Have Started With Fiscal Decentralization
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Opinion: Reform should have started with tax decentralization

Leova Mayor Alexandru Bujorian believes that the reform of local authorities did not start with the most important component - tax decentralization, and the experience of Leova cannot be automatically transferred to the villages.
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Alexandru Bujorian

Alexandru Bujorian

On the air of a domestic TV channel Alexandru Bujorian, the mayor of Leova said that the administrative-territorial reform should have started with the most important component of the reform – fiscal decentralization.

“If local authorities received a certain percentage of the taxes going to the state budget, it would be clear which localities would be able to survive and which ones would not,” he said. – We had it the other way around: first the reform was announced, and then the possible forms of support.”

Leov’s example does not apply to everyone

He explained that in the case of voluntary unification, each situation is unique, and what was feasible for Leova and the villages that joined it will not necessarily work for other localities.

“The unification of villages with the city of Leova is more of a municipalization nature,” explained the mayor. – The city, being a district center, has larger budgets, services and infrastructure that can support the rural settlements as well. Thus, problems that could not be solved by smaller administrations are now more easily solved there, thanks to the support of the city.”

However, what was viable for Leova will not automatically work in the case of the consolidation of rural settlements.

In this context, the MP warns that without real fiscal decentralization, many localities will remain dependent on transfers from the state budget, which will limit local autonomy and community development.



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