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Moldova Embarks on Ambitious Reforms to Enhance Efficiency, Sustainability, and Growth

Chisinau, Moldova - The Republic of Moldova has unveiled a comprehensive plan to revamp its public financial management systems, aimed at boosting efficiency, sustainability, and growth. The reforms are designed to consolidate the country’s network of universities, strengthen public procurement processes, enhance disclosure and risk management, and tackle the shadow economy.

Improving Public Financial Management

The government is committed to implementing these reforms to improve the overall effectiveness of public spending and create a more favorable business environment. According to Finance Minister [Name], “Our goal is to ensure that every Moldovan citizen benefits from high-quality public services and has access to opportunities for growth and development.”

Consolidating Universities

One key reform area is the consolidation of universities, which will involve absorbing smaller higher education institutions and merging research institutes with universities. This move aims to improve the educational process and enhance the quality of education.

  • The government will work closely with UN partners to conduct additional social sector spending reviews to improve value for money in this area.
  • The reforms aim to create a more efficient and sustainable education system, benefiting Moldovan citizens.

Strengthening Public Procurement Processes

Another significant reform is the strengthening of public procurement processes, which will involve rolling out a new e-procurement system to cover all public procurements. This move aims to support transparent public procurement processes and deliver cost-efficient services.

  • The government has approved the Public Procurement National Program for 2023-2026 to further harmonize the national regulatory framework with the Acquis Communautaire.
  • The reforms aim to create a more efficient and transparent public procurement system, benefiting businesses and citizens alike.

Enhancing Disclosure and Risk Management

The government is also committed to enhancing disclosure and risk management, including the expansion of its fiscal risk statement to include climate hazard risks. This move aims to improve the coverage, monitoring, inter-agency coordination, and reporting quality of contingent liabilities in the country’s fiscal risk statements.

  • The reforms aim to create a more sustainable and resilient financial system, protecting Moldovan citizens from economic shocks.
  • The government will work closely with international partners to monitor the success of these reforms.

Tackling the Shadow Economy

To tackle the shadow economy, which accounts for around 23% of Moldova’s GDP, the government plans to reform the state labor inspectorate to improve its governance, build capacity for better risk analysis, and enforce dissuasive sanctions. This move aims to create more fiscal space, promote fair competition, improve labor market conditions, and crowd in informal participants into the social safety net.

  • The reforms aim to reduce corruption and increase transparency in public institutions.
  • The government believes that these reforms will have a positive impact on the economy and society as a whole.

Strengthening Public Investment Management

The reforms are also designed to strengthen public investment management, including the development of a registry for approved investment projects and making supporting documentation public. The government plans to mandate compliance with Regulation 684 for all new eligible public investment projects considered for funding under the medium-term budget framework (MTBF) and State budget from 2024.

“The reforms we are implementing are designed to create a more efficient, sustainable, and growth-friendly environment in Moldova,” said Minister [Name]. “We believe that these reforms will have a positive impact on our economy and society as a whole.”

The government has committed to implementing these reforms over the next few years, with a focus on creating a more favorable business environment and promoting economic growth. The success of these reforms will be closely monitored by international partners, including the International Monetary Fund (IMF).