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Moldova

Budget Transparency and Public Procurement (MD0070)

Overview

At-a-Glance

Action Plan: Moldova Action Plan 2018-2020

Action Plan Cycle: 2018

Status: Active

Institutions

Lead Institution: Ministry of Finance, Public Property Agency

Support Institution(s): NA

Policy Areas

Anti-Corruption, E-Government, Fiscal Openness, Legislation & Regulation, Legislative, Open Parliaments, Public Procurement, Publication of Budget/Fiscal Information

IRM Review

IRM Report: Moldova Design Report 2019-2020

Starred: Pending IRM Review

Early Results: Pending IRM Review

Design i

Verifiable: Yes

Relevant to OGP Values: Access to Information

Potential Impact:

Implementation i

Completion: Pending IRM Review

Description

2. Increase budgetary transparency and of public procurement
Lead implementing
agency/actor Ministry of Finance, Public Property Agency

Commitment description
What is the public problem that the commitment will address? Budgetary transparency and transparency of public procurement are high importance topics and are often discussed by the community –at-large. Public procurement is a system where public needs meet private offers, and is a sphere with huge corruption risks. Good regulation and transparent procedures are necessary to minimize these risks, along with creating a market of tenders that makes government procurements effective and fosters competition at the same time. The citizen should be informed about use of public financial resources, understand the main budgetary documents and have access to data online.
What is the commitment? Commitment refers to improve budgetary transparency and transparency of public procurement. The commitment includes activities aiming at facilitating the understanding of the main budgetary documents, ensuring availability of data online, including via BOOST database and publication of reports about public procurement contracts monitoring.
How will the commitment contribute to solve the public problem? The implementation of the commitment will contribute to an increased level of understanding of budgetary process and the ways public money is spent.
Why is this commitment relevant to OGP values? • Access to information;
• Civic participation
Milestone Activity with a verifiable deliverable Responsible authority Deadline Progress indicators
Drafting and publishing on the official website of the Ministry of Finance the budget for citizens after the adoption of Budget Law by the Parliament and the budget execution report for citizens Ministry of Finance Annual Budget for citizens and
report on budget execution for citizens published
Updating the BOOST Public Expenditure Database to facilitate access to budget execution information Ministry of Finance Quarter II, annual Updated database
Publishing information on budget planning and execution, public procurement and sectorial spending strategies on public authorities' websites Ministries, other central administrative authorities,
public institutions Annual Published information
Ensuring publication of the
Reports on public procurement contracts monitoring Ministry of Finance,
Public Procurement Agency Annual Developed and published report

IRM Midterm Status Summary

2. Budgetary and public procurement transparency

Language of the commitment as it appears in the action plan: Increase budgetary transparency and of public procurement [21]

Milestones

2.1 Drafting and publishing on the official website of the Ministry of Finance the budget for citizens after the adoption of Budget Law by the Parliament and the budget execution report for citizens

2.2 Updating the BOOST Public Expenditure Database to facilitate access to budget execution information

2.3 Publishing information on budget planning and execution, public procurement and sectorial spending strategies on public authorities' websites

2.4 Ensuring publication of the Reports on public procurement contracts monitoring

Start Date: 2019           

End Date: 2020

Commitment Overview

Verifiability

OGP Value Relevance (as written)

Potential Impact

Completion

Did It Open Government?

Not specific enough to be verifiable

Specific enough to be verifiable

Access to Information

Civic Participation

Public Accountability

Technology & Innovation for Transparency & Accountability

None

Minor

Moderate

Transformative

Not Started

Limited

Substantial

Completed

Worsened

Did Not Change

Marginal

Major

Outstanding

2. Overall

Assessed at the end of action plan cycle.

Assessed at the end of action plan cycle.

                                       

Context and Objectives

Budget and public procurement transparency are major topics in Moldovan society and were included in Moldova’s third action plan (2016-2018). [22] Overall, budgetary transparency in Moldova has improved since 2011. [23] The Ministry of Finance’s website has been substantially modernized in recent years, and budgetary data is published on the open data portal date.gov.md. However, open data standards are not always observed (information is still presented as pdfs) and the data on budget execution is not commonly categorized by program, but according to the economic and functional classification, starting with 2019. [24] Also, budgetary information on the websites of other ministries and governmental agencies is often difficult to follow, as these websites do not always have clear structures, [25] even though the structure of governmental webpages is regulated by a Government Decision. [26]

In recent years, Moldova has employed visual aids, interactive approaches, and more citizen-friendly structures. In 2019, the Ministry of Finance launched a budget transparency portal (buget.mf.gov.md), which provides a clear visualization of budget execution data. [27] The Ministry of Finance has also published a Citizens’ Budget annually since 2015. It provides a simplified version of the Public Budget, which is published after the Budget Bill is passed each year. There is no legal provision requiring the publication of this document and the Ministry of Finance outsources this task, so the plan is to institutionalize its publication in-house. [28]

With this in mind, milestone 2.1 of the current commitment, which calls for publishing the Citizens’ Budget, represents a continuation of an existing government practice. According to the Ministry of Finance, there are no changes or updates foreseen to the Citizens’ Budget format during the fourth action plan period, [29] which was last improved in 2017. [30]

The Ministry of Finance launched the BOOST Public Expenditure Database (2.2) [31] in 2010 in order to increase transparency and efficiency on public expenditure. [32] The World Bank and the Center of Information Technologies in Finance (CITF) have previously updated the database. While the Ministry of Finance intends to institutionalize this in the future, there is no clear timeline at the moment. [33] The BOOST database should be updated annually, but there are delays which can restrict the data’s relevance (the most recent update made in 2019 was for the 2017-2018 period). [34] While this commitment calls for updating the BOOST database, it does not provide additional details that would help determine the potential changes.

Milestone 2.3 also continues a government policy from the third action plan, as all public authorities are required to publish on their websites information on budget planning and execution, public procurement, and sectorial spending strategies. Similar to the milestone in the previous action plan, the current milestone is vaguely formulated, and makes the potential impact difficult to assess. [35]

Milestone 2.4 focuses on publishing monitoring reports on public procurement contracts. In 2018, there were many changes regarding the public procurement process in Moldova and the role of the Public Procurement Agency was modified. [36] According to the amended Public Procurement Law, [37] the Public Procurement Agency is tasked with monitoring contracts. Monitoring implies the random selection of any public procurement and its monitoring throughout the process. [38] A public procurement expert stated that the agency can only determine the status quo through these reports and does not have powers to enforce sanctions or corrective measures. Also, the reports are not regularly published. [39] From the formulation in the action plan, it can be deduced that these are the monitoring reports in question.  

Overall, this commitment does not foresee any discernable changes in government practices in terms of transparency of public expenditure and budgeting, or public procurement contract monitoring. While it continues the implementation of good practices from previous years, as well as some routine activities, the potential impact is marked as none.

Next steps

The IRM recommends including more ambitious commitments in the area of public procurement policy in the next action plan. Specifically, the IRM recommends continuing to improve the quality of open data on MTender and align the data with international best standards. This includes the publication of critical procurement documents, such as procurement plans, notices of intended procurements, and decisions of tender commissions. [40] The IRM also echoes recent recommendations from the Open Contracting Partnership to embed monitoring tools for public procurement, possibly by adding feedback mechanisms to act on complaints and reports of anomalies on MTender. [41] Ukraine’s DoZorro public feedback mechanism for reporting procurement violations could serve as an example for Moldova’s MTender.

Since some of the activities on budget transparency in this commitment are outsourced, capacity building for relevant government stakeholders [42] on how to use, update, and implement the instruments (BOOST, Citizens’ Budget) could further improve transparency and timely presentation of budgeting. Also, the government could consider promoting participatory budgeting at central and local levels and facilitating public and expert deliberations on the budget development process.


[21] OGP, Moldova Action Plan 2018-2020, https://www.opengovpartnership.org/documents/moldova-action-plan-2018-2020

[22] OGP, Moldova Action Plan, https://www.opengovpartnership.org/?s=Moldova+Action+PLan

[23] Interview Tatiana Sava, Researcher at Expert-Grup Independent Think Tank, 1 April 2019.

[24] IRM, Moldova Mid-Term Report 2016-2018, https://www.opengovpartnership.org/wp-content/uploads/2018/11/Moldova_Mid-Term_IRM-Report_2016-2018_EN.pdf

[25] IRM, Republic of Moldova, End-of-Term Report 2016-2018, https://www.opengovpartnership.org/wp-content/uploads/2019/10/Moldova_End-of-Term_Report_2016-2018_EN.pdf

[26] Government Decision no. 188 of 03.04.2012 on the official webpages of the public administration authorities, http://lex.justice.md/viewdoc.php?action=view&view=doc&id=342699&lang=1

[27] Moldovan Ministry of Finance launches budget transparency portal, http://www.infotag.md/economics-en/277976/

[28] Telephone interview with Scleriuc Natalia, Ministry of Finance, 29 March 2019.

[29] Ibid.

[30] Interview Tatiana Sava, Researcher at Expert-Grup Independent Think Tank, 1 April 2019.

[31] Ministry of Finance, BOOST instrument, http://mf.gov.md/ro/content/ce-reprezint%C4%83-baza-de-date-cheltuielilor-publice-boost

[32] Ministry of Finance, BOOST instrument, https://mf.gov.md/ro/categoria-documentului/boost

[33] Telephone interview with Scleriuc Natalia, Ministry of Finance, 29 March 2019.

[34] Interview Tatiana Sava, Researcher at Expert-Grup Independent Think Tank, 1 April 2019.

[35] IRM, Republic of Moldova, End-of-Term Report 2016-2018, https://www.opengovpartnership.org/wp-content/uploads/2019/10/Moldova_End-of-Term_Report_2016-2018_EN.pdf

[36] Ibid.

[37] Law no. 131 of 03.07.2015 on public procurement, http://www.legis.md/cautare/getResults?doc_id=113104&lang=ro

[38] Interview Diana Enachi, IDIS Viitorul Think Tank, 3 April 2019.

[39] Interview Diana Enachi, IDIS Viitorul Think Tank, 3 April 2019.

[40] Additional information could include complaints, amendments to the procurement contracts, reports on each stage of contract execution with performance indicators, and payments and data on the performance of the contract as per the final execution.

[41] Open Contracting Partnership, Opening up Moldova’s contracts. Progress and challenges, https://www.open-contracting.org/2019/12/11/opening-up-moldovas-contracts-progress-and-challenges/

[42] Interview Tatiana Sava, Researcher at Expert-Grup Independent Think Tank, 1 April 2019.


Commitments

  1. Access to Information and Open Data

    MD0069, 2018, Access to Information

  2. Budget Transparency and Public Procurement

    MD0070, 2018, Anti-Corruption

  3. Civil Society Collaboration

    MD0071, 2018, E-Government

  4. Diaspora Participation

    MD0072, 2018, E-Government

  5. Accountability Mechanism

    MD0073, 2018, Anti-Corruption

  6. Public Service Delivery

    MD0074, 2018, Access to Justice

  7. Increase Public Procurement Transparency

    MD0061, 2016, Access to Information

  8. Increase Knowledge of Public Procurement Process

    MD0062, 2016, Access to Information

  9. Ensure Budgetary Transparency

    MD0063, 2016, Access to Information

  10. Open Data in Education Sector

    MD0064, 2016, Access to Information

  11. Publish Government-Held Open Data

    MD0065, 2016, Access to Information

  12. Participative Policy-Making Process

    MD0066, 2016, E-Government

  13. Public Sector Evaluation

    MD0067, 2016, Public Participation

  14. Ensure Quality of Service Delivery

    MD0068, 2016, Capacity Building

  15. Improving the Government Open Data Portal

    MD0048, 2014, Access to Information

  16. Setting up an Action Plan for Open Data

    MD0049, 2014, Access to Information

  17. Setting up Guidelines for Publishing Open Data.

    MD0050, 2014, Access to Information

  18. Raising Awareness Among Civil Servants.

    MD0051, 2014, Access to Information

  19. Civil Servant Training

    MD0052, 2014, Access to Information

  20. Government Email System

    MD0053, 2014, E-Government

  21. Auditing Public Websites

    MD0054, 2014, Anti-Corruption

  22. Evaluating e-Petition Requirements.

    MD0055, 2014, E-Government

  23. Fostering Transparency at the Local Level.

    MD0056, 2014, E-Government

  24. Improving Communication at the Local Level.

    MD0057, 2014, E-Government

  25. Adopting New Public Consultations Principles.

    MD0058, 2014, Legislation & Regulation

  26. Training Civil Servants for Improved Communication

    MD0059, 2014, Capacity Building

  27. Improving Online Participation Platform

    MD0060, 2014, E-Government

  28. Strengthening the Enforcement of the Regulation on Transparency

    MD0001, 2012, E-Government

  29. Semestrial Progress Reports on Transparency in Decision Making

    MD0002, 2012, E-Government

  30. Update the Module "Decision Making Transparency" on the Websites of the Central Public Authorities

    MD0003, 2012, E-Government

  31. Publish Environmental Open Data on Central Public Authorities Websites

    MD0004, 2012, Environment and Climate

  32. Develop Methodological Guide

    MD0005, 2012, Environment and Climate

  33. Amendment Regulation

    MD0006, 2012, E-Government

  34. Mandatory Use of Government e-Mail Account Electronic (Gov.Md)

    MD0007, 2012, E-Government

  35. Annual Report on Public Sector Information

    MD0008, 2012, Legislation & Regulation

  36. Post Information on Draft Policies and Legislations on Www.Particip.Gov.Md

    MD0009, 2012, E-Government

  37. Development of an Online Petition Portal

    MD0010, 2012, E-petitions

  38. Starred commitment Draft the Law on Public Sector Information Reuse

    MD0011, 2012, Access to Information

  39. Develop Institutional Regulations for Collecting, Archiving and Publication of Data in Digital Format in Line with National Standards

    MD0012, 2012,

  40. Developing the Public Procurement Application

    MD0013, 2012,

  41. Starred commitment Drafting the Government Decision on Implementation of Law on Public Sector Information Reuse

    MD0014, 2012,

  42. Opening Priority Data

    MD0015, 2012,

  43. Publishing the Open Government Data Catalogue

    MD0016, 2012,

  44. Expanding Government Data Portal (Www.Date.Gov.Md)

    MD0017, 2012, Access to Information

  45. Mapping the Location of Public Institutions

    MD0018, 2012, E-Government

  46. Develop Applications to Launch of the Innovative Applications Development Contest

    MD0019, 2012,

  47. Implementation of Selected Apps

    MD0020, 2012,

  48. Develop National Standards for Collecting, Archiving and Publication of Data in Digital Format

    MD0021, 2012,

  49. Amend Law No. 1264- XV to Make Income and Property Declarations of Senior Officials, Judges, Prosecutors, and Civil Servants, Public

    MD0022, 2012,

  50. Develop an Online Automated Information System for Public Officials to File Income Statement

    MD0023, 2012,

  51. Develop Guidelines for Using Social Media in the Public Sector

    MD0024, 2012,

  52. Harmonize Public Relations and Communication Strategy with the Guidelines on Using Social Media

    MD0025, 2012, Capacity Building

  53. Government Presence in Social Media

    MD0026, 2012, Capacity Building

  54. Social Media in Government Training

    MD0027, 2012, Capacity Building

  55. Develop Regulation

    MD0028, 2012,

  56. Publish Documents

    MD0029, 2012, E-Government

  57. Publish Projects, Plans and Budget Proposals on Websites of Authorities

    MD0030, 2012,

  58. Starred commitment Publish Real-Time Information on State Budget Execution

    MD0031, 2012,

  59. Update Annual Database on Public Spending (BOOST) and Publish Data for 2011

    MD0032, 2012,

  60. Publish Online Realtime Income and Expenditures of Central Public Authorities

    MD0033, 2012,

  61. Opening up Data and Providing Quarterly Updates on External Assistance

    MD0034, 2012,

  62. Create an Internal Integrated Information System for Collecting Information on External Assistance

    MD0035, 2012,

  63. Develop and Launch an External Web Application to Monitor Flow of External Assistance

    MD0036, 2012,

  64. Transparent Information on Public Procurement

    MD0037, 2012,

  65. Starred commitment Develop and Launch the Electronic Information System

    MD0038, 2012,

  66. Establish a Procurement Agency Assistance Center

    MD0039, 2012,

  67. Train Public Offcials

    MD0040, 2012, Anti-Corruption

  68. Develop Indicators and Statistical Methodology for Transparency in e-Procurement Systems

    MD0041, 2012,

  69. Starred commitment Amend Electronic Procurement Law

    MD0042, 2012,

  70. Draft and Approve List of Public Services

    MD0043, 2012,

  71. Develop and Implement Quality Standards

    MD0044, 2012,

  72. Digitize Public Service Gradually

    MD0045, 2012,

  73. Starred commitment Human Resources Management System

    MD0046, 2012,

  74. Innovative IT Tools for Primary and Secondary Education System

    MD0047, 2012,

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