Getting money where it's needed
How DFID helps the Moldovan government improve the way it plans its budget
Vasile Bulicanu has seen it all during his time in Moldova鈥檚 Ministry of Finance. As head of the budget coordination section, it is his job to bring together budget requests from across the Moldovan聽government. Not so long ago these requests would arrive in pure numerical form.
鈥淲e used to receive a figure and that was it,鈥� says Vasile. We weren鈥檛 told the priorities for the year or if the money was going to a sustainable project. It was impossible to know if it was enough or too much.鈥�
The arrival of a new budget planning tool has changed all that. Vasile refers to the Ministry of Education as an example.
鈥淭hey used to simply say, 鈥楪ive us 10 million for our needs鈥�,鈥� Vasile explains. 鈥淣ow they tell us they need 50,000 for school repairs, 250,000 for salaries and聽money for the children鈥檚 breakfast.鈥�
Development of the new tool, known as the Medium Term Expenditure Framework (MTEF), started in 2002, with 拢2.7 million of support from DFID up until the end of 2010.
It had a rough ride, surviving several changes of government and the early scepticism of many officials. There are still challenges in training Moldovan聽civil servants to use the tool, but it is now in place and helping with the budget process.
Clarity and continuity
Lilia Gantea, of the Ministry of Health, sees the benefits of the new tool every day.
鈥淭he main advantage is the clarity,鈥� she says. 鈥淵ou know that if you have a figure there, you stick to it.鈥�
The MTEF also strengthens the link between policy and the budget.
鈥淥ur ministers have changed quite often and all of them have their own priorities,鈥� explains Lilia. 鈥淲ith a well constructed 3 year plan it鈥檚 easier for us to keep some continuity in our work.鈥�
The final phase of DFID鈥檚 involvement has helped to link the National Development Strategy, which sets out the government鈥檚 plans for reducing poverty, to the MTEF.
The World Bank is continuing to help the Moldovan government improve its financial management by funding further work to strengthen its macroeconomic forecasting and expenditure management.
Key facts and stats
DFID also provided a range of awareness and consultation activities to improve the transparency of budget planning and an extensive programme of briefing and training for Moldovan MPs and government staff.
DFID provided 拢880,885 between 2002 and 2008 for the establishment of the MTEF as a primary decision making tool for linking government policy with budgetary allocations. DFID will further strengthen this activity as part of its 拢1,787,196 support to the implementation of the National Development Strategy between 2009 and 2011.
A total of 183 months of national consultant inputs and 23 months of international consultant inputs were provided under the project.