Budget Planning Research Paper

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Budget planning the Republic of Moldova
The budget process in Moldova is regulated by Law no. 847 of 24.05.1996 on budget system and budget process and represents a number of “successive stages of development, approval, execution and reporting of budget execution”.
These stages constitute a “decision-making, democratic, political predominantly, continuous cyclical and with broad public impact process at macro and micro level, which manifests itself both economically and socially”.
In Moldova, the budget process consists of four consecutive steps:
1. Development of the State Budget - Ministry of Finance is responsible for this step and for the following key elements: identifying the state budget goals, sources of income and expense, establishing
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This planning tool has obtained the name of the Medium Term Expenditure Framework, which was later renamed the Medium Term Budgetary Framework (MTBF). In essence, the MTBF is a budget planning document for a period of three years: the next budget year and for two years thereafter. Planning and development of the next MTBF begins in December (13 months prior to the period for which the draw MTBF) and continues until the submission of the draft budget to Parliament. MTBF is updated simultaneously with the draft state budget and includes materials from the Annual Budget as part of the briefing note. It allows a better correlation between government policies and allocations of resources. MTBF is approved by the Government no later than 1 May and, following publication in the Official Monitor, is presented to Parliament for information. Once MTBF has been approved, it becomes the starting point for drafting the annual budget law.
As previously mentioned, the draft state budget law is developed based on MTBF. Thus, priorities and funding needs to be reflected in the Annual Budget are set out in the development of MTBF, therefore, in the process of developing the annual budget law, these are only updated and
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• Conclusions
Contrary to national legislation and international best practices, the authorities do not comply with the budget calendar, the most important planning documents (laws state budget and MTBF) systematically are being approved late. Moreover, the public does not participate in the budget process, although the Government is obliged to involve citizens in the process.
Currently, public authorities are focused more on informing and very little communication with the public. To fully benefit from the participation of citizens is necessary that the institutions involved in the budget process to formulate policies on public consultations, to determine exactly agenda and objectives for public consultation and publish reports on public input in the process.
Finally, ignoring the opinion of civil society in defining the priorities of fiscal policy is not auspicious for efficient use of public money and respecting citizens'

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