Decentralisation Reform Heading Towards Centralisation: In 2016–2018 Local Authorities' Dependence on State Budget Transfers Grew and Financial Autonomy Declined

According to study author Dumitru Budianschi, the causes lie in the structure of revenue sources, which grow more slowly than state budget sources, and in recent administrative measures. Own local revenues, such as property taxes, local fees and service income, make up only about 11% of local budgets. He argues that other sources, first of all corporate income tax, must be included.

The current system is also seen as inequitable. Gagauzia has the highest per capita revenue, about 5.1% above Chisinau, while districts receive roughly 74% of Gagauzia's level. Local budgets account for about 25% of national budget resources including transfers, but only 7.5% without them (2.8% first-level, 4.7% second-level authorities).