Decentralizations and financial autonomy – opportunity for Moldovan local authorities

Abstract

In this article the author analyses the process of decentralization and financial autonomy as a result of using the new methodology for drafting the local budgets based on formulas. The key element is researching the impact of the new financing system on changes occurring in the communities. The new financing system is a chance for the citizens of communities to have quality services and local public administration has new opportunities to increase the tax base, supplement their incomes and provide a higher level of living to citizens.