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Activity of the Government on April 26 – May 9, 2004
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e-journal #30 |
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e-journal #30 |
Reshuffles
On April 28, Valentin Mejinschi was appointed as Director of the Centre for Fighting Economic Crime and Corruption. Noteworthy, until February 28 the position was held by Alexei Roibu, who was ousted by the Supreme Security Council as a result of the grain scandal.
Another reshuffle had Boris Cojuhari replacing Valeriu Starenco as Republic of Moldova plenipotentiary representative to the Commission on economic issues of the CIS Economic Council.
Decisions
- On April 28, Government approved the draft Law on governmental agent. Under the draft a governmental agent would represent Republic of Moldova at the European Court for Human Rights and would observe the hearings right from the beginning. The position would be part of a special department within the Ministry of Justice and be part of the diplomatic corps of the Republic of Moldova.
- Same day the following acts were approved: a Regulation providing for recognizing foreign scientific degrees by the Supreme Attestation Commission; a program aimed at renovating cultural institutions in the countryside in 2004. The latter is to be enforced on expense of local budgets.
- In the next three years 2005–2007, Government plans to gradually reduce income tax for natural and legal entities. Provisions in this respect were included in the draft expense budget for mid-term approved on April 30. Based on it, draft budgets for 2005–2007 are to be developed.
According to Finance Minister, Zinaida Grecianii, throughout 2005–2007 income tax shall be reduced to 15% and shall be applied commencing 2006 for legal entities and 2007 for natural entities. Furthermore, commencing 2007, minimal taxation quotas shall be reduced for natural entities to 7% — first level and 10% — second level.
It is also intended to gradually increase throughout 2005–2007 exemptions to the income tax for the natural entities. In 2005 those exemptions would reach 4,500 Lei, in 2006 — 5,400 Lei, whereas in 2007 — 6,000 Lei. Exemptions for supported persons shall be increased from 240 Lei to 1,200 Lei in 2005, 1,440 Lei in 2006 and 1,680 Lei in 2007.
Note worthy, the lowest income tax in Central and Eastern Europe is to be found in Hungary, boasting 17%. In Bulgaria companies have to pay a 18% income tax, plus 8% to regional budget. In Poland, income tax amounts to 20%, whereas in Slovenia and Bulgaria exemptions from income tax are granted to companies for 3–5 years, provided they invest in national economy and open up new jobs.
- On May 5, Government decided to set up a new interdepartmental Commission to work out an Action Plan aimed at increasing the efficiency of law enforcement’s co-operation in fighting crime and corruption that pose a treat to the political and economic developments in the country. Undoubtedly, increasing the cooperation between the law enforcement and control bodies is a worthwhile effort, however it would have been more efficient to include those measures in the draft Action Plan on enforcing the National Strategy on preventing and fighting corruption. A multitude of documents on fighting crime and corruption do not necessarily guarantee a breakthrough. Moreover, a systemic approach is needed to deal with those problems, which is exactly the case of the National Strategy and Action Plan.
- In addition to the Parliament Regulation on dignitaries and public officers amended by the Parliament last week, Government also approved a Regulation on May 5, thereby public officers shall be tested at least once in three years. Evaluation commissions shall include heads of public administration and shall conduct a professional assessment of the officials, their role in achieving the tasks set for the department, their communication skills, responsibility and initiative. The Regulation also provides for additional assessments.
- Another programme adopted by the Government is “Education for everyone” for years 2004–2008. Its rather ambitious goals refer in particular to: decreasing differences in education in rural and urban area, setting favourable education conditions in kindergartens for at least 75% of 3–5 year old kids, and 100% for preschool children.
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