Moldova is in the process of drafting the state budget law for 2024, and its state representatives came to learn the Slovak dos and don’ts.
In the presence of the State Secretary of the Moldovan Ministry of Finance Ms. Olga Golban, representatives of the Ministry of Finance of Moldova, Ministry of Economic Development and Digitalization, and State Tax Service learned about new approaches to public financial management during a study visit to Slovakia.
Moldova has been one of the priority countries of Slovak ODA for a long time. UNDP and the Slovak Ministry of Finance have been running the Public Finance for Development Programme in Moldova since 2010. The study visit built on the activities implemented in Moldova within its framework.
The State Secretary Ms. Olga Golban explained why she joined the study visit: “It’s important for us to see how the Slovak colleagues improve their abilities, manage financial instruments, and cooperate in the macroeconomic and budget process.”
Three areas of inspiration
The experience and case studies that were presented to the experts from Moldova demonstrated how to effectively deliver results by rationalising budget spending and conducting spending reviews. Slovakia supported the implementation of first spending reviews in Moldova, originally in cooperation with IMF, currently with UNDP. Spending reviews can save public money and redirect sources to key areas such as climate change adaptation or energy efficiency. Together with public investment projects assessment, these principles are good practice in applying value for money principles.
Besides Value for Money Division of the Slovak Ministry of Finance, the participants got to know the Institute for Financial Policy as well. The institute provides reliable macroeconomic, fiscal and tax analyses and forecasts. Assessment of existing fiscal and budgetary policy interventions and the identification of new solutions for financing planned priorities largely depend on this forecasting.
To the Moldovan experts, digitization of taxes was of particular interest. IT systems such as “EKasa” and the “VAT listing” approach were used as case studies. Digitization not only helps reduce the tax gap and allows tax authorities to manage and administer the tax system more effectively. It also facilitates a smoother experience for taxpayers.
“You can study a lot, but this kind of interaction and exchange of experience with another party is more useful for us. I believe it is mutually beneficial,” stated Ms. Olga Golban. She concluded: „With confidence in the continuation of this successful collaboration, we look forward to working together on future projects and continuing to grow and prosper. Slovakia and UNDP are a valuable partner and essential to our success“.
The study visit of Moldovan officials to Bratislava, Slovakia took place from 8-10 November 2023.
Cooperation among UNDP, Slovakia, and Moldova
PFD Programme has been established in 2009 with the aim of assisting the partner countries in their efforts to reform and set up the public finance management. Programme helps translate the principles of development effectiveness into practice, thus contributing to advancing the effectiveness of global development efforts to achieve the ambitious Sustainable Development Goals. The Republic of Moldova became a recipient country of the program in 2010.
Interventions in Moldova are aimed at supporting the Ministry of Finance and individual ministries in the implementation of program budgeting (PBB), in the development of expert capacities, including monitoring and evaluation for PBB, as well as improving the legal and methodological framework. The Programme also supported piloting of three spending reviews.