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The Finance Ministry has submitted for public consultations amendments to the Law on Public Finances and Fiscal Responsibility. The amendments are designed to harmonize Moldovan legislation with European legislation and to improve the management of public finances.
According to the authors of the draft, the creation of such a council in Moldova will contribute to strengthening fiscal discipline, increasing the transparency of the budgetary process and its sustainability.
The draft provides for the addition of an article to the law, which regulates the council’s activity. The new body will be endowed with organizational, functional and operational and financial autonomy.
The powers and duties of the Tax Council are proposed to be as follows
evaluation of macroeconomic and budget forecasts, monitoring of compliance with fiscal policy rules, evaluation of public policy proposals that may have an impact on budget expenditures and/or revenues, as well as on its sustainability, etc.
If the project is approved, the government will be obliged to follow the council’s assessments and recommendations. And in case of non-compliance with them – to provide explanations. Both the council’s recommendations and the government’s explanations will be published.
The procedure of organization and activity, the structure and the maximum number of members of the council will be approved by a parliamentary decision.
It is proposed that the Tax Council will start functioning from January 1, 2028.
