Budget transparency relates to how citizens participate and contribute to decision making on budgeting and how the expenditure is incurred. Analyzing the situation in Chișinău's Local Council, we found that the level of budget transparency in Chișinău is set at an unacceptable level. Thus creating conditions for flourishing of corruption practices and wasting money on non-priority projects for Local Council to higher costs.
This study aimed to perform an analysis on how the budgetary resources of the City of Chișinău are formed and managed, specifically, the analysis of the framework for budgetary transparency at all stages of the budget process and the management of public property by lease and rent, privatization. One of the main conclusions of this study is that the current level of budget transparency, incomparable with international practices and the quality of local budget information document does not meet even the domestic legal framework provisions.
The most serious deviations from the principles of transparency refers to the use of city estates, especially land and uninhabitable premises. The impact of existing practices at this point is not only a major downturn in financial terms but also in terms of urban and economic development. The main obstacle in opening the acitivty of the municipality is represented by vested interests of economic groups combined with the personal interests of municipal councilors and civil servants.
Given the nearly one billion lei (MDL) of the Chișinău budget is spent on capital expenditures and procurement of goods and services, the lack of quality procurement practices generates considerable loss to the municipal budget. Existing procurement practices result in a lower level of effective competition for public contracts and therefore obtaining a very low level of quality of contract enforcement. Lack of public reports on procurement and their results in Chișinău, ex post assessments of acquisitions causes a lack of responsibility and accountability of the authorities. The absence of such reports does not allow learning from existing errors and correct them.
The full version of the study is available in Romanian versions