Moldova may establish a Fiscal Council in 2028 with 11 employees at a cost of 8 million lei
Starting January 1, 2028, the Republic of Moldova could have a Fiscal Council—an independent institution that will analyze how public funds are planned and spent, and will issue warnings regarding risks to the national budget. This new authority will be empowered to verify the Government’s economic forecasts and recommend how to manage public finances. The Ministry of Finance developed these provisions in a draft law, which was discussed on Monday, October 26, during a meeting of the Government’s secretaries-general.
The Fiscal Council is intended to operate independently of the Government and other public authorities. Its primary responsibilities will include verifying the economic forecasts underlying the state budget, monitoring compliance with fiscal rules, and evaluating decisions that involve significant expenditure or affect state revenues.
For instance, the institution could assess whether projections regarding economic growth and budget receipts are realistic, or whether certain measures announced by the authorities risk undermining the stability of public finances.
The Government must provide a public explanation if it chooses not to follow recommendations
A key provision of the draft legislation stipulates that the Executive must either heed the opinions and recommendations of the Fiscal Council or publicly explain why it has adopted a different stance. Such explanations must be provided within two months of the publication of the recommendations.
“The Council is an autonomous fiscal authority, mandated to independently and publicly evaluate and monitor fiscal-budgetary policy,” the draft law states.
The institution will have the authority to request data and documents from public authorities, and it will make its analyses and reports public. The Council will also submit an annual activity report to Parliament by May 31.
According to the draft, the new institution will comprise 11 positions: three for members of the Fiscal Council, five for specialists in economics and public finance, and three for administrative staff.
Members will be appointed by Parliament for five-year terms, following a public selection process. Parliament will select one member from candidates proposed by the National Bank of Moldova, another from those proposed by the Academy of Sciences, and the third through an open competition. Candidates must have at least ten years of experience in the economic sector or public finance and may not be members of any political party.
According to estimates by the Ministry of Finance, the establishment and operation of the Fiscal Council are projected to cost 8.1 million lei in 2028. Of this amount, approximately 6.25 million lei is allocated for salaries and social contributions, with the remainder covering equipment, maintenance, research, and other expenses. The state budget will fund the institution.
Creation of the Fiscal Council: Part of commitments to the EU
The Ministry of Finance justifies the need for this new institution by citing commitments the Republic of Moldova undertook as part of its accession process to the European Union. The Fiscal Council is intended to contribute to more responsible management of public funds and the early identification of budgetary risks.
“Currently, the country lacks a Fiscal Council or any other Independent Fiscal Institution; however, the establishment of such an authority is a requirement for accession to the European Union,” the explanatory memorandum states. According to the document, discussions on creating such a Council began as early as 2017; however, the project returned to the authorities' attention after the Republic of Moldova became an EU candidate country in 2022.
The new institution is included in the Republic of Moldova’s commitments under Negotiating Chapter 17, “Economic and Monetary Policy.”
The Government is currently reviewing the proposal, which must still undergo the formal approval process. If adopted by Parliament, the law on the organization and functioning of the Fiscal Council will enter into force on January 1, 2028.
