The Liberal Democratic Party of Moldova (LDPM) has taken note of the Government’s explanations provided in response to the party’s statement regarding the reform of Local Public Administration (LPA). Their analysis confirms one of LDPM’s key conclusions: the so-called LPA reform no longer corresponds either to the country’s actual needs or to the commitments originally presented to the public, TRIBUNA reports.

“Today, the Government is effectively acknowledging that the financial incentives previously promised as guaranteed support for merged communities will no longer be provided automatically. Instead, they will depend on investment projects that still need to be assessed, approved, and financed starting in 2027. In this way, the Executive substantially changes the original concept presented to mayors and citizens. LDPM believes that such an approach creates conditions for establishing mechanisms of administrative dependence and political influence over local public administration authorities.

This is precisely why LDPM has stated from the very beginning that the so-called local public administration reform is, in reality, an electoral project of the PAS party. Its purpose is to revive the ruling party’s territorial structures and use administrative resources in a new format to achieve political objectives in future elections. Instead of transparent, uniform, and legally guaranteed rules, the Government is creating a system in which public investments become dependent on decisions made by the central authorities,” the party said in a statement.

LDPM also notes that the Government has once again avoided answering the main question: what exact sources will finance the approximately 6.5 billion lei publicly announced by government representatives? The Executive continues to refer to an estimated amount without disclosing specific budget sources, financing schedules, or guarantees that these funds will actually be available in the coming years.

“At the same time, the budgetary and tax policy reform expected in the coming days is aimed at covering a deficit of around 6 billion lei, needed to service debt obligations, through VAT harmonization, as well as increases in taxes and excise duties. Given that the planned state budget deficit already exceeds 20 billion lei this year and is expected to grow further next year, taking on new financial commitments of this scale requires comprehensive, transparent, and convincing explanations,” the Liberal Democrats stated.

LDPM warns of a serious risk that these commitments may not be fulfilled in the form in which they are currently presented.

According to the party, in the absence of guaranteed funding sources, the Government may be forced either to resort to new costly domestic borrowing or to increase the tax burden on citizens and businesses in order to cover the planned expenditures.

“The local public administration reform is too important a process to be turned into an instrument of an election campaign. It must be based on the principles of transparency, predictability, respect for local autonomy, and equal treatment of all communities regardless of their political preferences,” LDPM stated.

The party calls on the Government to publicly present the full legal framework of the new financing system, disclose the exact sources for the announced 6.5 billion lei, publish the schedule for allocating funds, and guarantee equal, non-discriminatory financing for the development of all localities, regardless of their position regarding voluntary territorial consolidation.