2017: Journal no. 1 & 2

FINANCIAL CONSOLIDATION OF THE ADMINISTRATIVE-TERRITORIAL ENTITY IN THE LIGHT OF DECENTRALIZATION

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Authors:  
Tatiana MANOLE, PhD, Professor, National Institute for Economic Research, Moldova
Alexandru STRATAN, PhD, Professor, National Institute for Economic Research, Moldova

„Should we head towards ‘self-government’ required by many of the participants, would that be a selfgovernmentof the citizens or the elect representatives? Whatever would happen, decentralization is, ina way, the book of our society, a book in which we find its aspirations, discrepancies and questions…It is well led from above, but it is well administered from the bottom.”(Xavier Frège, Paris, 1986)

This article presents the results of study regarding the decentralization process, which is currentlyunderway in the Republic of Moldova. The purpose of the study is to highlight the fundamental concept ofdecentralization, the areas of administrative decentralization, the forms of manifestation of financialdecentralization (fiscal decentralization and budget decentralization), to identify the priorities of thedecentralization process, and to establish the indicators for measuring the degree of decentralization. Inbase of the statistical analysis and synthesis method, it was determined the current state of the art in theadministrative-territorial entities in the course of the decentralization process in relation to the publicfinance management reform. It were formulate proposals to accelerate the process of financialdecentralization and self-government.

Keywords:  
decentralization, financial, tax and budget decentralization. Measurement indicators, degree of decentralization, tax capacity, budget, inter-budgetary relations, transfers.