Finance

Finances play a primary role in any activity. In our country, as in other countries with a market economy, finances can be grouped into two large categories: public finances and private finances. Public finances represent that category of financial resources associated with the state, with administrative-territorial units and other public law institutions, and private finances are those financial resources associated with businesses, banks, private insurance companies.

The elaboration and execution of the budget, the organization of the finances of the municipality of Chisinau, as well as the promotion and implementation of the state policy in the field of public finances at the local level, is ensured by the General Finance Directorate.

The approved Chisinau municipal budget for 2024:

• Revenues – 7 717 706,7 thousand lei, including transfers from the state budget – 3 976 929,0 thousand lei
• Expenses – 8 365 410,1 thousand lei, with the budget balance in the amount of 647 703,4 thousand lei

The General Directorate of Finance is a structural subdivision of the Chisinau Municipal Council, which operates under the leadership of the General Mayor of Chisinau.

On July 21, 1944, the first financial section in the republic was established – the Chisinau Financial Section, which, after a series of structural changes, was reorganized into the General Directorate of Finance starting in 1995.

In its activity, the Directorate is guided by the Constitution and laws of the Republic of Moldova, the decrees of the President of the Republic of Moldova, the decisions of the Parliament and the Government, the orders, provisions and instructions of the Ministry of Finance, the decisions of the CMC and the provisions of the Mayor General. The Directorate has the mission of ensuring the promotion and implementation of state policy in the field of public finances at the local level, the management of public finances in accordance with the principles of good governance.

The basic functions of the Directorate are:

• implementation and promotion of public finance policies;
• ensuring adequate management of budget resources and expenses;
• ensuring the elaboration of budget proposals;
• ensuring the apportionment of the approved budget according to the budget classification;
• analysis of the execution of the municipal budget;
• receiving financial reports from budgetary institutions subordinate to the CMC and from first-level local public administration authorities;
• conducting thematic financial control activities regarding the aspects related to compliance with the legal framework that regulates the use of budgetary financial means;
• carrying out the financial monitoring of municipal enterprises and joint-stock companies in which CMC holds a share;
• the elaboration of proposals to the normative framework in its field of competence.

The current banking system began to take shape in 1993. It consists of two levels: the National Bank of Moldova and commercial banks.

Currently, by analogy with other countries, a two-tier banking system is created. The first level is the National Bank. As a unique issuing body of the state, it determines the monetary, credit and exchange policy and supervises that it is carried out in life, as well as ensures a vigorous control over the activity of the other banks, being independent, in its actions, from the executive bodies. The second level of the banking system in the country is made up of commercial banks.

The national currency of the Republic of Moldova is the Moldovan leu. The exclusive right to issue money belongs to the National Bank.

The Stock Exchange was established in 1994, and the first securities trading took place on June 26, 1995. However, the term “stock exchange” does not cover the entire national securities market, as there is also the so-called over-the-counter exchange. Thus, the stock market – is a complex, structured system through which securities are exchanged in accordance with financial legislation. The development strategy of the Moldovan Stock Exchange is based on close and mutual cooperation with international platforms. The main goal is to establish and implement mechanisms to ensure long-term cooperation, develop various communication channels and strengthen relations with interested parties.