Evolution of Budgetary-Fiscal Policy in the Republic of Moldova at the Current Stage

Abstract

In the Republic of Moldova, public finance management (PFM) is subject to continuous reforms. Reforms are necessary to improve PFM, especially given that resource allocation must be in line with the national goals in the context of the Republic of Moldova’s EU candidate status. The vision of reforms is reflected in the policy document Strategy for Public Finance Management 2023-2030. The Memorandum on Economic and Financial Policies signed with the International Monetary Fund in 2023 also provides for a series of reforms of budget-fiscal policy to strengthen revenues mobilization, improve budget quality and budget transparency, efficiency of expenditure related to economic growth etc. Moldova has already implemented the foundations of a modern budget and has made good progress in line with the recommendations of international organizations on budgetary governance. The most important reforms were the introduction of new budget legislation, a medium-term budget framework, performance budgeting, and the piloting of gender-responsive budgeting. This paper examines some aspects of the evolution of budgetary-fiscal policy in the Republic of Moldova, with particular attention to the budgetary process. Based on this analysis, the recommendations focus on ways to strengthen the institutional and policy framework, improve the quality of the methods and tools available for decision-making throughout the budget process, and the quality of the budget management system. UDC: [336.14.02+336.22.02](478); JEL: H61, G18.