1.

Public finances

1.The public finances comprise all the financial resources accumulated on behalf
of the state and distributed by the state for the fulfillment of its functions and
tasks(art 4 law 181)

Public finances study the relationships between public spending, the tax system
and the behavior of economic agents that are individuals, families and firms.
(Brown &Jackson)

Public finances are a concept that represents the totality of the social-economic
relations of constitution, distribution and use of the public good, those specific to
the public credit and the control of the public goodof those specific to public credit
and control of the public good.(Petica Roman)

The totality of social and economic relations that appear in the process of
establishing, distributing, using in the form of money the resources necessary for
the state to carry out its functions and tasks(D, Şaguna)

2.a) • They are economic relationships, as they appear in the process of forming,
distributing and using the social product.

• They appear in money form, because within the production of goods and the
action of the law of value, the product of production, reproduction and movement
of goods, the distribution of the social product, the relations of exchange, the
remuneration of labor, as well as the relations between the economic agents or
between them and individuals, they express themselves through money, within the
framework of money relations. The notion of public finances or financial relations
cannot be confused with that of money or money relations. Money is a commodity,
and finances are relations of constitution, distribution and use of money.•

 They are relations without equivalent, that is, they do not necessarily
imply a directconsideration from the beneficiary of the money means.

• The money distributed and used by the beneficiary subjects are not reimbursed

3.a)The classical conceptions, reflected by the liberal economic doctrine, lead to

the idea that all economic activity must be carried out according to the principle
'laissez-faire, laissez-passer', that any intervention of the state that would disrupt
the initiative and free competition should be avoided. The role of the state,
according to these concepts, is to limit itself to maintaining public order, national
defense, maintaining diplomatic relations with other states, etc. The organization
of finances, taxes, state loans and other means of procuring the financial resources
of the state should have a neutral character, not favor or disadvantage certain
sectors or enterprises, respectively not to modify the existing proportions, ie the
balance that is formed by market.

b) The modern concept of public finances is based on the idea of the "provident
state", which must broaden the scope of its concerns, intervene in the economy,
influence the economic processes, prevent or take measures to mitigate the effects
of economic crises. In the modern conception it is indicated that the state to set up
public or joint ventures, to grant subsidies or facilities to private enterprises from
different branches, to take measures to combat unemployment, social protection
and to recover the stagnant economy

4.• The resources necessary for the state to carry out its functions and tasks are
obtained by way of taxes and duties, through measures of constraint mainly, while
the resources of private companies and of natural persons are procured from the
market, on contractual basis.

• The state can take any measure in relation to the national currency, while private
companies can only use it.

• The public finances are mainly used to meet the general needs of the company,
while the private finances are used to profit from the private entrepreneurs.

• The management of public finances is subject to public law, and the financial
management of private companies follows the rules of civil and commercial law.

5. At the present stage the financial activity of the state is based on the private
domain. The state constitutes a complex financial system of acts, operations and
public institutions of financial nature or with financial attributions of control
regarding the formation and use of state funds, territorial administrative units and
others. public interest entities. Referring to the current stage of the Republic of
Moldova, it exceeds a long period of transition where the financial activity has its
superior role in improving the situation.

A well-developed financial activity means nothing but healthy enterprises,

business oriented towards continuous development, implementation of new
technologies, all in order to maintain a balance in the financial system. The
financial system of the Republic of Moldova at the present stage consists of the
following elements - The budgetary system - is a unitary system of budgets and
funds, which constitutes the national public budget and includes: the state budget -
constitutes all the revenues and the destination of the expenditures for a budgetary
year; The budget of state social insurance - which includes the revenues and
expenses and financial results of the public system; local budgets - the budgets of
the territorial administrative authorities; the funds of compulsory health insurance -
these funds are examined and approved by the Moldovan Parliament, once with the
state budget, these funds are constituted by the compulsory health insurance
premiums, other payments provided by the legislation; special funds (extra budget)
- in these funds are collected revenues with a special purpose for achievement.

7. From the Law on Entrepreneurship andenterprises is a reference norm for

art.2411CP RM. From art. 9  of the Law named, we find out: it is prohibited
activities, other than those registered and authorized in the manner provided by
law,by which it is proposed to the persons, by public offer, todeposit or collect
reimbursable financial means, regardless of how this collection is carried out; It
isprohibited activities, other than those registered and authorized in the manner
provided by law,through which it is proposed to the people, by public offer,to
deposit or to collect financial means or to Enter lists with the promise of financial
gainresults from the increase in the number of people recruited or entered,
regardless of how this collection or listing is performed. Consequently, the first
impression is that, by "practicing financial activity", within the meaning of art.
2411  CP RM,it is envisaged:1) conducting activities through which it is proposed
individuals, by public offer, to deposit or collect reimbursable financial means,
regardless of how this collection is made; 2) conducting activities through which it
is proposed for persons, by public offer, to submit or to collect financial means or
to register on lists with the promise of financial gains resulting from the increase in
the number of people recruited or registered, regardless of how this collection or
registration is carried out on lists; 3) collection from persons, by public offer, of
repayable financial means.

8. Republic of Moldova, as a neoliberal state a) It have progressive tax - The Fiscal

Code of the Republic of Moldova designates this notion as the income tax, and
Article 15 exhaustively regulates the tax rates, b) The existence of a social market
economy - Projects of social entrepreneurship in the Republic of Moldova, such
as:- The project "Better opportunities for young people and women", UNDP
(United Nations Development Program) Moldova

c) Price stabilization through state authorities - an eloquent example would be: The
Cabinet of Ministers approved in autumn the changes in the Law on the market of
petroleum products to lower the retail price of liquefied gas and to invest with this
right to control and stabilize the price of the National Regulatory Agency. Energy,
d) State intervention in the framework of free competition, by establishing a legal
framework, the rules of the game for traders, in order to prevent the monopoly on
the market - the law in 2012 of the Competition Law. The law establishing the
following cardinal points: the prohibition of practices, anti-competitive
agreements; abuse of a dominant position; establishing discriminatory conditions
for the activity of the economic agents; the prohibition of unfair competition;
regulations regarding economic concentrations, etc

Financial law

9. The financial law can be defined - all normative acts. which we regulate. the
relations of constitution, distribution and use of the state money funds and of the
public institutions, destined to fulfill the social-economic tasks of the society.

Financial law - all the legal norms that regulate the social relations that appear
when constituting, the use of the state money funds, destined to satisfy the social-
economic tasks and needs of the company.

Financial law - represents the branch of law made up of legal norms in order to
regulate the financial relations, the use of the money funds, destined to the public
interest.

10. Starting from the notion of legal norm of financial law, it can be defined as a
rule of law established or recognized by the state, which includes the rights and
obligations of the subjects participating in the report of financial law and whose
compliance is ensured by the state authority.

According to their content, the rules of financial law are classified in:

•materials

• procedural

Materials are those that establish the structure of the budget system, the form and
content of the financial obligations of natural persons towards the state, ie those
that establish the rights and obligations of the participating subjects.

Processes are those that determine the form and mode of action of the material
norms, eg: the budget procedure, the establishment of the method of constituting
the financial bodies.

The rules of the financial law are general, impersonal in nature and they concern an
unlimited number of participants and are applied repeatedly over time whenever
the conditions mentioned in them are met.
 According to the logical-legal structure, the norm of financial law has the
following 3 elements:

• hypothesis - indicates the circumstances in which the provisions of the rule of law
are applied;

• disposition - indicates conduct to the subjects and may:

-onerative, that is the obligation to do some actions

- Prohibitive, ie the obligation to refrain from doing any actions

great mood

• Sanction - pecuniary sanctions are imposed (fiscal fines, different late payment
increases, suspension of financing.

11. The financial legal reports are represented by the social relations that arise in
the process of setting up the distribution and uses of the village funds, and which
are regulated by the financial legal norms. Financial law reports are born, modified
and they are extinguished on the basis of the unilateral manifestation of the will of
the state, through specific forms provided by the financial legal norms originating
from taxpayers without a judicial decision being necessary in this respect.
Depending on the scope of public finances, financial law reports can be: budgetary
legal reports, fiscal legal reports, banking legal reports, legal credit reports, legal
valuation reports, legal financial control reports an.

Subject :- the state represented by a state power

-individuals .or legal entity

Object: the object is different determined in the first place by the complete sphere
of public relations, deeds, normative acts and specific operations regarding the
financial activity.The object-actions of forecasting, lending, military movement,
financial control The object forms the payment of a sum of money to which the
subjects of financial doctor are kept

Content- the right of the fiscal bodies to collect taxes, other contributions in
accordance with the obligation of the taxpayer to satisfy these requirements in the
amount provided by the law. control with which the control is invested

12. Regulatory method: a- imperative method

With the transition to the market economy in the theory of public finances with the
basic ones, others are admitted, for example b- elaboration,c- recommendation - in
budget lawThe methods of private law – contractual method- tax law, credit
relationships

The purpose: The object of the financial legal regulation represents the will of the
financial law in which the structural components of public finances are
circumscribed, respecting their delimitation from private finances .

13. The sources of financial law are made up of all the normative acts that regulate
financial legal relationships. In relation to the degree of generality or specificity,
the following sources are distinguished:

A. COMMON FINANCIAL STATEMENTS

Thus, in the hierarchy of springs, we distinguish as the first source of financial law
- the Constitution. The fundamental law of the country stipulates provisions
regarding the elaboration, approval and execution of the national public budget and
of the closing account of the budgetary year, as well as the constitutional norms
state competences regarding the management of the public money, tasks regarding
the control of the budgetary execution, the foreign policy , fiscal policy, etc. As
common sources are distinguished, the ordinary laws of the parliament, the
presidential decrees and the government decision.

SPECIFIC ISSUES OF FINANCIAL LAW

The specific sources are the normative acts that include provisions regarding the
financial relations. As specific sources of financial law we quote:

1. The Fiscal Code of the Republic of Moldova 3. The Law of the Republic of
Moldova on the Money 4. The Law of the Republic of Moldova on the National
Bank of Moldova 5. The Law of the Republic of Moldova on the budgetary system
and the budgetary process 8. The Government of the Republic of Moldova
regarding the approval of the rules for carrying out domestic operations in the
economy the national of the Republic of Moldova

By purpose:

- acts for drawing up the state budget

- acts of public loan, of formation and use of the money funds;

- financial control acts

After the effects produced:

- financial acts - legal acts, manifestations of will.

- financial operations - they do not produce legal effects but they are the basis for
issuing financial legal documents, they are acts of calculation of income, expenses
incurred by financial-accounting specialists.

After appearance (the body that issued them):

- Laws are issued by the Parliament with applicability to the state, administrative-
territorial units and public institutions.

- International agreements - sources of law provided that the Republic of Moldova

is a party to this agreement and they are ratified by the Parliament.

- Government grants are issued for the organization of the enforcement of laws.

- The normative acts of the MF-normative acts establishing legal norms that
dissolve and detail the content of the general provisions of the financial specialized
laws.

14. A unanimous opinion is that according to which the financial law is part of the
public law. With regard to the public domain, we can say that the financial legal
norms ensure the establishment of funds for financing and managing the needs of
general interest, as well as the destination and the way of financing. In the case of
the private domain, the legal norms regarding the public finances direct their
attention and efforts towards: - delimiting and collecting public resources from
taxpayers; - encouraging by means of fiscal facilities some economic activities;
-stoping of some commercial activities according to the public interest; -
supporting traders for progress and development; Financial law has an increased
importance and a strong active role, considering that through the legal norms that
contribute to its formation it can support and stimulate certain productive sectors of
the economy.

  Regarding the place occupied by the financial law within the legal system and
taking into account the existence of the two major divisions of the law, we can say
that the branch of financial law is part of the public law because it regulates by its
own norms general interest, public . Within public law, financial law is found in
connection with constitutional law, a branch of great importance that has been
enshrined through the Constitution. The constitutional regulations outline a series
of general directions of action towards the state budget, budgetary procedure, taxes
and taxes. Another relation is the relation with the administrative law, since this
branch of law includes provisions regarding the executive powers, the state
financial bodies that are part of the state administration and constitutes the
administration of public finances. Considering the fact that there are a number of
coercive measures in the field of financial law regarding the detection and
sanctioning of offenses, we can say that it has relations with criminal law. The link
with labor law lies in the formation and use of state budget funds, for state social
insurance and other financial resources. Another close connection is noted between
financial law, civil law and commercial law, considering that the three branches
include legal norms that regulate in a priority way patrimonial relations that have
as object certain rights as well as obligations that can be quantified, determined.
and materialized through coins.

15. The principle of legality-art 130 Constitution R M

The principle of equality of citizens in front of the law and public authorities
monetary and fiscal policy

The principle of publicity-art 23.76 Constitution, art 65.73 law on public finances

The principle of the distribution of functions in the financial field

The principle of local autonomy-art 109 Constitution

The social characteristic principle of the activity of the state-art 46 law 181

The principle of financial planning the real estate tax October-deadline

The principle of fair determination of the tax burdens - art 58 "citizens are obliged
by taxes and taxes to contribute to public finances

The principle of verifying the legality of the use of money.

Monetary circulation

18. The monetary issue - that is the right of the states to beat the currency, is an
attribute of their monetary sovereignty, which was recognized internationally for
the first time, officially, in 1929 and which consists of the following operations:
the creation of money signs, that is, the printing of tickets and the minting of coins;
storing by the issuer the money signs, putting into circulation the money signs
created for this purpose, respectively withdrawing them.

19. • The function of evaluating economic values. With the currency material
values are measured, the prices are expressed, the purchasing power, the credit.
• The function of mediating the exchange of goods and services through the sale-
purchase operations. The currency mediates the movement of goods, being itself an
intermediate commodity. The currency has evolved continuously with the
production and exchange of goods; on the other hand, the products become goods
whose circulation is facilitated by the currency.

• The payment intermediation function. The currency acquires the quality of legal
currency because the creditor is obliged to receive the currency in circulation on
the date of liquidation of a debt. It can be used to make any payments, by any of
the subjects of law, regardless of the category of goods or services subject to this
commercial act.

• The credit intermediation function. Credit is the temporary transmission of a

purchasing power; it is a currency loan. The currency serves as a means of granting
credit.

• The function of mediation of economies. The temporary availability of the

population can be redeemed through the currency. In this way, the currency turns
into capital, which can be used effectively in the currency circulation.

• The treasury function. With the help of the currency you can keep and transfer
the values that are required to be maintained over a long period of time. Also, the
values can change from one holder to another in the most efficient way through the
currency. The treasury is realized under the conditions of the circulation of money
with integral value (of gold) when the function of means of circulation and
payment is fulfilled by the coins of ordinary metal or banknotes, these money
lacking intrinsic value replacing those of precious metal, which they are
transformed into ingots, they can be kept or sold in this form, by weight, like any
commodity.

• The social function of distribution and redistribution of goods and services. The
social product is distributed with the help of the currency to those who have
contributed directly or indirectly to its creation. The currency facilitates a good use
of the national factors of production, ensuring a fair distribution of the social
product.

   These functions of the currency are not required to be fulfilled, cumulatively, by

a commodity to be considered the currency. It is sufficient that it performs only
one function of the aforementioned to become the currency, if it is assimilated as
such
20. The amount of money required for the monetary circulation represents a set of
prices of goods and services sold and collected of the outstanding payments
influenced by the prices of the goods and services sold on credit or compensation,
all depending on the speed of rotation of the money.

Factors influencing the amount of money:

-Factor of direct influence (-Volume of products; -Level of prices;)

-Factor of indirect influence (-Development of payments without cash).

The speed of circulation of money expresses the number of transactions that can
serve a money unit.

It is influenced by the following factors:

- The lower the speed, the higher the amount;

- Social-economic stability and economic conjuncture;

- The degree of coincidence between the receipts of the income by the population
and the moment of the payments made by the population;

- Confidence of the population in the purchasing power of the currency.

21. Payments without cash consist in the fact that the currency should be the object
of the payment, instead of being handed over to the beneficiary in the form of
manual currency and was replaced by a provision whereby the amount available in
the payer's account passes into the beneficiary's account the amount agreed as
payment .

Benefits:

• The available cash of the PF and PJ would represent a latent state capital.

• The risks associated with the provision and manipulation of cash are eliminated
through tax assets;

• Cash payments involve a move or the payer or payee, but they do not.

• Cashless payments can be reviewed, verified, controlled based on the documents

from the accounting officer

• Through these payments, the holder has the possibility to free himself from the
worries of paying periodic amounts, welfare amounts related to ensuring the
circulation of cash.
disadvantages:

A disadvantage of non-cash payments is related to the risk, the distrust-unlocking

of the security system.

23. Cash payments are those in which the monetary or paper or metal sign is used
and consist of the compensation of the rights and obligations of mutual payment.
From the analysis of the cash payments by the PJ, namely the circulation of cash
payments, there are restrictions.

According to the Law on Entrepreneurship and Enterprises, it presupposes that in

relation to businesses and organizations, regardless of their type of property and
the form of legal organization, which performs cash settlements in an amount
exceeding 1000 lei for each transaction. Also up to 10 thousand monthly to pay
taxes and fees.

In order to combat the tax evasion when carrying out the cash settlements and the
fulfillment by the economic agents of the legal provisions regarding the consumer
protection, the Government by the Decision no.447 of 28.04.98 decided to oblige
the companies, the organizations, the institutions, their subsidiaries regardless of
the form. of property and organization-juridical that carries out the activity of
entrepreneur and provides cash services to use house machines and control with
fiscal memory.

It is allowed to market without the use of home cars:

- nurses, PF and churches.

Also:

- the activity of the patent holders of entrepreneurs;

-medical services;

- marketing of religious objects in religious houses;

-testing lawyer services.

Credit

24. The loan represents the amount of money that a bank gives to a natural or legal
person for a certain period of time, up to a certain date called maturity and for
which it receives an interest.
The credit represents the transfer of an amount of cash made at one time by one
sub-economy to another, with the obligation that the latter will refund at a certain
date the amount received plus an amount of money that is called interest or
interest.

Credit elements:

1.The subjects of the credit report As creditors, companies are confronted, which
handle important monetary availabilities. As debtors with companies and
population, the state is also affirmed as one of the main debtors.

2. the transmission - values, money, the purchasing power that I think transmits
deb.

3. The grace period - the period between the moment of the loan's commencement
and the beginning of its repayment (elem do-v)

4. Partial rates - those that are reimbursed in installments on certain terms

according to the agreement stipulated in the credit agreement.

5. Guarantee of the loan (pledge) -ets made up of certain goods that are made
available to the creditor or a third party to ensure the debtor's fulfillment of
obligations of a generally lower value.

6. Obtain a sum of money paid by the debtor to the creditor or for the loan granted
on a fixed term.

7. Deadline-the time set for the return of the good

8. penalties

25. The main forms under which credit is presented in the market economy are:

1. The commercial credit represents the credit granted by the economic entities
when selling the goods in the form of deferred payment.

2. The bank credit is granted to the agent or person in the form of money by the
fine banking institution.

   From the point of view of the quality of the debtor and the creditor, the
distinction is made between:

1. Private credit - in which the participants in the credit report are the subject of a
private doctor;
2. Public credit - in which the debtor is represented by the state, and the population
and economic agents appear as creditors.

  Depending on the purpose of granting the loans:

1. Production credits, which can be:

- consumer credits for the current consumption of the individual

- for production intended for investments in the production sector

 Depending on the nature of the guarantees, the following forms of credit are met:

1.Real credits - are those for which the guarantee is presented in the form of:

- real estate guarantee materialized in a mortgage contract on the land or buildings;

- securities, which consign in securities;

2. Personal loans are based on moral guarantees, which can be presented as

follows:

After the extent of the creditor's rights:

1. Credible loans - which will be issued when the creditor reserves his right that at
any time, before the due date, he should request the repayment of this credit, with
or without the debtor's approval.

2. Undeliverable loans - when the creditor has the right to request repayment only
at a pre-established maturity.

3. Loans related-case in which the lender conditions the granting of the credit for
its use for certain purposes agreed by the debtor.

After the repayment term:

1. Short-term loans - from 1 month to 12 months.

2. Medium-term loans whose repayment rate is from 1 year to 5 years.

3. Long-term loans whose repayment rate exceeds 5 years.

4. Overnight loans - a bank located on a continent that is a bank lends another bank
on another continent (USA-Europe).

The functions
 . • The distributive function consists of the redistribution of the money resources,
available at a given moment in the economy and the granting of loans in other
sectors, activity activities that have financial resources needs (participate in the
concentration of capital and its distribution)

• The function of transforming the economy into investments that are realized
according to the rule E = the investments, that is, by means of the credit, the
inactive economies are made available (the money is put into circulation today)

• The function of monetary issuance, as a result of its credit consolidation based on

the trust between participants in the economic act, was created the trust currency
with a fictitious value based on trust, and subsequently determined by the needs of
the exchange of goods, other payment instruments and techniques appear. (material
non-existence of money only as a value)

• The function of ensuring the stability of prices, it is realized by regulating the

dimensions of the demand and the supply, the goods and the services, crediting on
the one hand the consumption of the stocks and on the other hand the stocks (so
that the prices do not fluctuate permanently)

26. PUBLIC CREDIT = the set of relationships of use and mobilization of

resources with a temporary and reimbursable character in order to cover public
expenses.

The public credit represents a contractual relationship by which the creditor

transmits to the state property means provided the state repays it at the expiration
of the term for which they were granted

27. The external credit represents the loan granted by the state, banks and other PF
and J to countries, banks and natural and foreign persons.

Benefits:

• Allow the realization of imports for economic modernization, which increases the
competitiveness of the products on the external market;

• Making investments in economic objectives;

• Creating new jobs for the personnel from the affected branches;

• Ensure that the reforms are carried out in accordance with the processes that are
stated externally.

disadvantages:
• An important external state debt entails the allocation for the payment of their
services of an important part of the entries in the convertible currency with views
on the decrease of the level of investments;

• Accumulating a large debt of foreign debt is a painful process for countries with
non-competitive export and represents a mortgage on future generations.

28. Field of use of the means of external loans:

1. Maintaining the balance of payments;

2.Financing investment prices for the development of the priority areas of the
economy;

3. Covering the budget deficit;

4.Financing the expenses related to the liquidation of the consequences of natural

disasters and other extraordinary situations;

5.Financing the reasonable expenses related to the contract due by the state;

6. Import of raw materials;

7. Honoring the obligations assumed by granting state guarantees for loans;

8. The debt refinancing service previously contracted.

29. The state loan as a legal act, represents a convention concluded between the PF
and the PJ, having the status of state-debtor creditor, by which one party commits
to make available to the other party a sum of money as a loan, and the other is
obliged to respect the conditions of the Convention, paying for the use of the credit
a certain amount of money.

MF uses state-owned loan generating instruments regulated by the Moldovan

legislation, including state securities, issued for placing on the domestic market.

Internal:

-HVS (government securities);

- loans from NBM and other financial institutions in Moldova;

-other domestic debt-generating institutions.

External:
-HVS, representing a loan contract with value expressed in any legal currency
except the national one;

- loans from the Governments of these states, from the agents of the Governments
of other states;

- loans from foreign financial institutions, international financial organizations;

- other bi- or multilateral loans

 30. External credit is the credit granted by the state, banks or natural or legal
persons to countries, banks or to natural or legal persons.

• Loans can be granted by international financial institutions to some states;

• Intergovernmental loans that are granted by states to other states;

• Loans granted by states to private banking institutions of other states.

An important role in the totality of the income of a state next to the own financial
resources

It also returns to external resources. Thus, from the economic point of view, the
external credits must to a large extent be destined to their economic development
or to the economic sectors that are endowed with internal economic resources.
From a social point of view, the external credits must first postpone the transition
for a period when it will be easier to bear the reimbursement of the contracting
resources previously.

Budgetary Law

 31. The budget represents an economic-financial process, with an evaluative,

programmatic and comparative character, composed of two parts, respectively
from the part of revenues and the part of expenses, which is drawn up for a fixed
period, in relation to the financial resources of any natural or legal person. .

The law on the system. Budget and budget process stipulates that the budget
includes the sources of revenue and the destination of the expenditures for a budget
year. According to the legislation through the budget is understood a document (a
law voted by the Parliament) in which are inscribed the expenses the statues and
the incomes necessary to cover them. The state budget is elaborated annually by
the Government and approved subsequently by the Parliament.

32. In terms of the legal nature of the state budget in specialized literature, a
number of theories have been formulated:
1. The budget is an administrative act because both the revenues and the budgetary
expenses are evaluations made by the administrative agents.

2. The budget is a legislative act - it is a decision that emanates from the legislative
power.

3. The budget is an administrative act + legislative - the budget is a law in the

creative part of general provisions and is an administrative act in the creative part
of individual provisions.

4. The budget is a financial plan - it takes the form of a normative act.

5. It has the legal nature of law - it is considered that the budget is adopted by a
law bearing the name of annual budget law

33. The distribution of income and expenses in the budget budget is subject to
some rules of conduct in necessary solutions in case of main problems:

- it is granted to the state and the administration of the state in the same volume of
financial resources of care in order to ensure the fulfillment of the work of organs
of the functions assigned to them;

- it ensures that the budgetary expenses of the care correspond to the spheres of
being able to use an organ.

The process of distribution of income and expenses is based on the pursuit of the
main ones:

1. The principle of uniform (centralized) regulation - is expressed in stabilizing by

normative acts the bases of care communities determine income or expenses of
different level, the order to approve a normative of breakdowns or the way to use a
taxed budget

2. The principle of the maximum possible balance of the budget is realized under
the conditions of the chronic budget deficit in a system of special care measures
developed leading to the elimination or the microfora of the phenomenon.

3. The principle of administrative subordination, objective significance and

measures financed - from the budget actions are financed. The care is assigned to
the competence of each state body.

4. The principle of territoriality of the revenue stream - very important for the
constitution of the local budget.
5. The principle of the autonomy of the local public authorities to find some
income (granting their own budgets and their expenses must be necessary)

34. The budgetary law represents the totality of the financial-legal norms that
regulate the budgetary system, the structure and the order of the distribution of the
budgetary revenues and expenditures, the competence of the state bodies and the
bodies of the local public administration, as well as the budgetary process.

The budgetary legal reports represent the social relations that appear when
constituting, distributing and using the resources the national public budget and
which are regulated by the norms of the budgetary law.

36. The national public budget - represents the synthesized expression of the
economic relations that is manifested in the processes of formation and use of the
main centralized fund of state funds and of the territorial administrative units funds
in order to finance social cultural activities.

The content of the national public budget is made up of public revenues and public
expenditures.

 Public revenues are the practical means of establishing the state money funds.
These consist of ordinary (current) and extraordinary incomes. Ordinary income is
represented by taxes and taxes. Extraordinary revenues consist of loans (public
debt), supplementing the monetary mass in circulation through a new monetary
issue, issuing treasury bills and selling part of the state's gold reserves.

The public expenses represent ways of distributing and using the budgetary money
fund in order to meet the general needs of the company: army, public order,
education, health, culture, construction of streets, highways, housing, ports and
airports, modernization of transport, agriculture, environmental protection etc.

The content of the national public budget consists of all the links that make up the
budget structure as a whole.

The budgetary structure corresponds to the organizational structure of this state

(Federal states - federation budget, member states budget and UTA budget).

According to the Law on the budgetary system and the budgetary process, the
budgetary system in the Republic of Moldova in the current structure consists of 4
elements:

1.The state budget;

2.BASS
3. Local budgets

4. Funds for compulsory health insurance.

Budgetary procedure

37. According to the Law on the budgetary system and the budgetary process: "The
budgetary process represents consecutive stages of elaboration, approval,
execution and reporting of the execution of the budget." The budgetary procedure
is the activity that begins with the elaboration of the budget and ends with the
approval of the report on its execution for the year. respective budget.

According to the doctrine, the budgetary procedure means a set of documents and
operations with technical character and norms performed by specialized organs of
the state in order to elaborate, adopt, execute and conclude the national public
budget.

 38. The principles of the budgetary procedure in the states with market economy
define: the way of reflecting the public revenues and expenditures in the state
budget, that is to say its scope; the length of time for which the parliament
authorizes the government to carry out the budget exercise; the relationship that
must exist between the revenues and the budgetary expenses; informing the public
opinion about the sources of income and their destination.

In our country, based on the elaboration and execution of the budget of the central
state administration, of the social insurance budget and of the local budgets, the
principles of universality, balance and reality, applicable to the specific of each
budget (art. 4 of the Law of public finances, no. 72 / 1996). Besides these
principles, formulated expressly in the text of the law, from the analysis of the
other texts, more implicitly, also other principles: of unity (art. 19, para. 1), of not
affecting revenues (art. 10), of budgetary balance (art. 1), annuity (art.75) and
advertising (art.4 of the same law).

 39. The distribution of income and expenses in the budgetary system of the
Republic of Moldova is subject to general rules of conduct or principles in order to
solve two problems:

1. Give the state that amount of financial resources that will provide full organelle
for the exercise of their functions.

2. To ensure such budgetary expenses that correspond to the spheres of activity of

these bodies.
The process of distributing the income and expenses is based on the following
principles:

1. The centralized regulation, implies the necessity to establish by law the common
bases that determine the system of incomes and expenses of different levels.

2. The principle of the maximum possible balancing of budgets is realized in the

conditions of a chronic budget deficit through a series of measures with the
purpose of eliminating or correcting the budget deficit.

3. The principle of territoriality, implies the transfer and avoidance of the incomes
to be realized within the limits of the teriotir, where the subject is placed.

The order of budgetary revenues and expenditures is regulated by the fiscal

budgetary legislation. Thus, the Law on the budgetary system and process provides
for the general way of allocating budgetary revenues and expenses.

In 45 days from the publication of the annual budget law, the MoF approves the
monthly distribution of the budgetary revenues and expenses elaborated according
to the budget classification.

 40. The execution of the budget having the practical importance of guaranteeing
the role of this budget in public life is guided and controlled with the help of the
budgetary accounting evidence as part of the unified accounting system of the
national economy.

The execution of the national public budget also implies that the realization of the
income and the execution of the expenses approved by the law of the annual
budget will be done under the control of some bodies

state with responsibilities in the state activity

The control of the budget execution is carried out by:

1 Parlamenutl RM

2 The Court of Accounts

3 Ministry of Finance

After the expiration of the annual financial year, the accounting report was drawn
up

41. Evaluate the elaboration of the draft state budget of the Republic of Moldova:
This stage starts during the year. Thus, by the end of each budgetary year, it will be
possible to reach the adoption by the parliament of the elaborated budget. Min.
Min. Financing thus from the methodological point of view in the elaboration of
the project of the state budget, the important role is the evaluation or estimation
and the calculation of the assessment or estimation and the calculation of the
budgetary revenues and expenses as well as the methods used for this purpose. The
following methods are used to estimate income and expenses:

• autonomous method

• the morning of the increase

• direct evaluation method

The autonomous method is based on the preparation of the budget of revenues and
expenditures of the last budget whose financial year is completed and the
evaluations formed are influenced by the changes in the financial-fiscal legislation.
This method does not require a large volume of work but it has a disadvantage.
which is broken by reality, because the economic and social functions that were 2
years ago are not maintained during the elaboration of the state budget.

The major method is based on the results of the state budget execution for the last
years, determining the rate of growth or, if necessary, the decrease of the revenue
and budgetary expenses.

The method of direct evaluation involves performing calculations for each source
of income and for each category of expenses. Regarding the budget proposals in
the Republic of Moldova, they are represented by the public authorities according
to the structure and the content determined by Min.Finances include: the revenues
and expenditures realized in the last budgetary year, the incomes and expenses for
the future, estimated for at least 2 years after the year future. In the procedural
unfolding of the elaboration of the state budget project, a special role is played by
the services for the elaboration of the budget projects (According to art. 17 of the
law on the budget system and the budget process, the basic actions necessary for
the elaboration of the state budget project are presented Min Finance for the
Ministry of Economy, which presents the forecast of macro-economic indicators
for the next budget year, the forecast of state social insurance indicators is
presented by CNAS as well as by the Ministry of Health and social protection.
Indicators of Compulsory Health Insurance Funds, National Bank presents the
forecast of the balance of payments of credits, and of the external obligations. The
Ministry of Finance receives the budget proposals submitted by the public
authorities and at a date established by the Minister examines them jointly with the
representatives of these authorities with the right to ultimately decide to return to
the Ministry , before lays all the revenue and financial expenses. The draft state
budget together with the explanatory note submits and the annexes submit to the
government the state budget notifications on an asset.

42. When approving the provisional budget, the budget managers must ensure that
the provisional budget is correlated with the annual budgetary draft, so that the
volume of the expenditures executed from the provisional budget does not exceed
the volume provided in the annual budget project or is not outside it. 520. In
addition to the general distribution procedures, described in Chapter IX of the Set,
in the case of the distribution of the approved budget, which replaces the
provisional budget, there are some specific features: a) In the process of
distributing the budget that replaces the provisional budget, the limits are verified
with the approved budget. , as well as the volume executed from the provisional
budget. The allocation limits for the distribution of certain levels of the budget
classification must meet the following conditions: - to be within the approved
budget volume or the limit communicated by the hierarchically superior authority /
institution, and - be equal to or greater than the volume executed in the provisional
budget per the respective budget line. b) after the completion of the distribution of
the approved budget, the limits of the distribution of the provisional budget with
the limits of the distribution of the approved budget take place. When replacing the
limits, the free balance of allocations for each budget line is recalculated and
verified with the volume of commitments assumed based on the limits of the
provisional budget. If the balance of allowances is negative, which means that the
volume of commitments exceeds the approved limit, then the budgetary authority /
institution is obliged to revise its contractual commitments in order to bring them
into line with the limit and has two options: a) by redistributing the limits or b) by
termination of the commitments. c) the budgetary authorities / institutions that
have distributed the limits with the condition that the volume of the commitments
is not greater than the balance free of allocations, they can start the execution. The
authorities / institutions, which do not fulfill this condition, cannot start the
execution until they comply with the limits with the commitments assumed.521.
The flow of activities to replace the provisional budget with the approved budget is
shown schematically in figure 8.2. In case of necessity, the budget manager may
establish certain additional procedures for the procedure of substituting the
provisional budget with the approved budget, which will be communicated to the
budgetary authorities in a circular

43. Pursuant to the Law on public finances and fiscal-fiscal responsibility, the
budget administrator is authorized to temporarily block certain categories of
budget allocations, with the exception of payments for servicing the state debt /
administrative-territorial units, in the following cases: a) if the execution analysis
budgetary statements attest the worsening of the level of the budget balance,
approved by the annual budget law / decision and established as quarterly
forecasts; b) if the limits of allocations in the draft budget to be approved are
smaller than those of the provisional budget to be executed; c) if proposals to
amend the budget are initiated. The budget administrator performs the blocking,
with the information of the budgetary authorities / institutions and of the
Government / representative and deliberative authorities, according to the
circumstances that determined this action. The decision to block the budgetary
allocations is issued for a period that does not exceed 60 days, in the table format.
Until the end of the blocking period, the budget administrator can cancel the
decision or modify the term indicated in the decision to block the budgetary
allocations. The amount for the lock indicated in the decision cannot exceed the
volume of this balance.

The methodological set regarding the elaboration, approval and modification of the
budget. In the period of blocking of the allocations, the budgetary institutions are
obliged not to make commitments for the financing of the blocked spending
programs. If the actions related to the decisions to block the allocations do not
ensure that the budget balance is maintained within the limits set by the annual
budget law / decision, the budget administrator launches the procedure for
modifying the corresponding budget.

44. Establish the procedure for executing the financial control:

The financial control procedure is made up of a set of documents and operations

regarding the organization, development and exploitation of the results of the
control action. The results of the control action are determined precisely by the
way of programming and organization, thus ensuring the order in the work. The
financial control procedure is carried out on the basis of a well-defined plan, in a
certain order, which can be grouped into six stages. The first stage consists in the
preparation of the financial control team, by informing and documenting the legal
provisions regarding the specific of the unit to be controlled, the normative acts of
economic-financial character, the analysis of the previous control documents, the
measures taken following the verifications, the notifications made. by the financing
bank, those of the companies with which it has economic ties. The training of the
control team plays an important role, as it gives the possibility to establish the
basic problems and to ensure the quality of the control. The second stage is the
presentation at the unit where the control is to be carried out. The control bodies
ask the unit management to support the control in good conditions, by providing
them with all the necessary materials. The third stage is the organization of the
activity of the control team. After the findings made following the information, the
documentation, a work plan is drawn up which sets out the objectives included in
the control theme, the methods used etc. The more this plan is drawn up, the higher
the quality of control. Another stage is the carrying out of the control action, which
consists in the proper verification of the acts and operations, the legality, the
necessity, the opportunity, the economics and their realization. The control is based
primarily on data from the accounting records, but they are not sufficient, which is
why the other documents and records that are not of an accounting nature are
controlled. By thematic control of documents and records, a complete picture can
be obtained on the content of the operations and economic processes of the
controlled unit. But the economic processes are clearly reflected in the synthetic
and analytical indices included in the budgets of incomes and expenses. The
control bodies, in case of finding frauds, displacements, deficiencies in
management or if the documents are dubious, a cross control must be performed.
For this it is necessary to lift the researched documents, leaving in their place
children. It is very important that documents be picked up immediately so that they
are not altered or destroyed. During the inspection, in case any deviations are
discovered, committed consciously or unconsciously, the culprits will be asked to
give explanations in relation to that problem. Another stage consists in the drafting
of the control documents, these consisting in the substantiation of the conclusions,
the findings and the proposed measures, the presentation of deviations and the
legal provisions included, the responsible persons, their position in front of the
control team, the point of view of the control team and the definitive conclusion. In
this stage it is synthesized, the findings made during the control are finalized, the
acts being done during this time and not at the conclusion of the control, this would
lead to the difficulty of the valorisation of the acts. The last stage consists in
capitalizing on the control action, which is materialized by taking measures and
following the executions by the unit that ordered the control, as a result of the
findings made in documents. The main purpose of exploiting the results is to
remedy the deficiencies. For this, a plan of measures will be drawn up, the control
bodies having the task of granting the necessary support to the unit to achieve it.
We can conclude that if all these moments are taken into account when carrying
out the control, it will have the desired efficiency, discovering - the deficiencies are
timely, ensuring the operative measures that are required.

45. Argue the correlation of the legislative and executive power in the budgetary
procedure.
As mentioned above According to the law on the budgetary system and the
budgetary process, the Government presents to the parliament by October 1 of each
year the draft state budget. is elaborated on the basis of the information and reports
presented by the public authorities

The parliament after receiving from the government the project informs the court
of accounts, which gives an opinion to the parliament and the latter proceeds
further.

Analyzing this stage we can realize that the links between these powers of the state
are tight.

46. .Identifies the continuity of the state social insurance budget:

BASS is the annual care financing plan that reflects the establishment, distribution
and use of the funds needed to protect pensioners, the employee and a family.

BASS is a component of the national public budget.

The content must look at two aspects:

1.The income includes:

- the contribution for the state social insurances paid by the economic agents and
institutions;

- the contribution of employees and other insured persons;

- contributions for private unit social data insurance based on free initiative;

- interest to be part of accounts;

- it contributes to the differences between the employees and the pensioners who
combine the care of the spa treatment or the rest.

1.The expenses include:

- pensions (for work submitted and age limit, invalidation).

- social insurance benefits and assistance (deeds of assistance, care of the sick or
disabled child);

- referring to spa treatment and rest;

- expenses with the payment of postal taxes caused by the transfer of pensions;
47. Select the features of BASS execution:

The implementation of the BASS consists in the realization of the contribution and
the other income, in practical correlation necessary with the payment of pensions,
allowances and financial aid granted from this budget.

The particularities that characterize the execution of BASS refer in particular to:

1. Earned income

2.Cheltuielile

The revenues of the state social insurance budget come from the social insurance
contributions (23angaj / 6sal), from the transfer to the bug. from st. and from other
income (from interest, from increases for late payment of contributions)

The expenses of the state social insurance budget cover the value of the social
insurance benefits from the public system, the expenses related to the organization
and functioning of the public system, the financing of own investments, other
expenses provided by law.

From the revenues of the state social insurance budget, up to 3% is drawn annually
for the establishment of a reserve fund.

The cumulative reserve fund may not exceed 50% of the level of expenditure for
the respective budget year.

The reserve fund is used to cover social insurance benefits in highly motivated
situations or other expenses of the public system, approved by the law of the state
social insurance budget.

48. Formulate BASS adoption:

This budget is drawn up separately from the state budget, it includes the financial
relations for setting up, distributing and using the welfare funds needed for social
assistance and protection.
BASS is examined by the specialized parliamentary commission, the other
committees of the Parliament and the Legal Direction of the legislative body that
presents a report and opinion to the Plenary of the Parliament on the date
established by it. the date established by it.

Based on the opinions of the Standing Commissions and the opinion of the Legal
Department, the specialized commission prepares the report and the list of
recommendations on the BASS law and submits them to the Parliament.

The examination of the draft BASS law in Parliament is carried out in 3 readings.
In each reading, the Parliament examines the draft BASS law and the explanatory
note. The budget law can also be adopted in 2 readings if all the issues are
examined in a single reading.

The first reading examines:

- the main directions of the budgetary policy of the state social insurance;

- the basic concepts of the project;

Second reading:

- estimated revenues in the form of calculation and their structure;

- estimated costs: their structure and destination;

- budget deficit or surplus.

Third reading: Parliament at the presentation of the specialized Commission:

- examines the detailed allocations to be made;

- establishes the allocations that will be financed as a priority;

- examines other details in the draft law.

Until December 5 of each year the Parliament adopts the BASS law which will be
promulgated by the President of the State, then it will be published and enter into
force on January 1 of the following year. If the BASS law was not adopted at least
3 days before the end of the year budget, the BASS Law of the previous year
applies.

50. Establish the place of local budgets within the B.P.N.

In order to appreciate the place of the local budgets in the system of the
contemporary state budget, we use the weights that have the incomes and the
expenses in the total of the consolidated ones. Transformations from the state
budget to the rational budgets, the central budgets of UTA Gagauzia, the budget of
Chisinau municipality, from these budgets to the local budgets. When drawing up
local budgets, account is taken of:

• Within the term established by the Ministry of Finance the finance directions of
the local public authorities submit to the M.F. for the analysis, the forecast of all
the types of taxes and taxes to be collected in the next year as well as the
projections of the local budgets of level 2

• Within 30 days from the date of publication of the budget law, the local public
authorities bring the approved budgets

• Within the term established by M.F. the finance departments present M.F.
quarterly and annual reports on the execution of the respective budgets.

51. Tell about the autonomy of local public finances.

Local public authorities are a territorially delimited human collectivity that have
different public authority than central state ones. Their financial autonomy is
absolutely necessary because the autonomy, it would not be possible to manage
without the financial authorities that ensure the material support of the functioning,
the local communities know their own possibilities regarding the resources of
public origin, but especially the needs regarding its expenses must be covered for
the production of local public services. The autonomy of the local public finances
is:

• A local clectivity has the right to adequate own resources that it can freely
dispose of in order to exercise its attributions

• The financial resources of the local community must be proportional to the

responsibilities established by the constitution

• Protection of the weaker local authorities from a financial point of view

• At least part of the financial resources of the local community must produce
taxes, local taxes from the proportions established by the law

• In order to finance their own investment objectives of local public authorities,

they must have access to the payment of capital.
53. Interpret the process of second level adoption.

The finances of the administrative-territorial units are administered according to

the Law on local public finances according to the principle of local autonomy. The
budgetary process and the budgets of the administrative-territorial units of level 1
and 2 are independent of each other as well as of the state budget. Local public
authorities have their own tax base (distinct from that of the state) consisting of
taxes, the amount of which is established in the law on local public finances. and
financial matters necessary for other legislative acts. The local public authorities
also have other financial sources such as: local taxes, revenues and the assets of the
territorial administrative units and those provided for in the provision of services.
Non-tax revenues are not included in the calculation of general purpose transfers.
The procedures for the distribution of the own financial resources of the local
public authorities as well as any modifications of the legislation regarding the
functioning of the local public finance system must be coordinated with the
representative structures of the local public authorities. Any delegation of
competence is forbidden without the allocation of financial sources, necessary to
cover the constitution of the achievement of the respective competence.

55. Define the notion of tax and tax:

The tax represents a compulsory and non-reimbursable monetary contribution due

according to the state budget law by the natural and sworn person for the income
they obtain or the goods they own.

The fee represents the amount owed by the individual or sworn person for certain
acts or services performed or provided at the request and for the benefit of these
persons by the local body, pub institute.

57. Classify taxes:

There are many taxes and they are used. Their grouping into classes according to
common features is both a theoretical and a utilitarian necessity.

a) According to the form in which they are levied, taxes are classified

- taxes in kind:

- taxes in money:

b) After the object of the taxation, the taxes are grouped in:

- taxes on assets: which affect the movable or immovable property of the

taxpayers (tax on buildings, on land,
 - income taxes: which concern the incomes of individuals or companies (corporate
income tax).

- consumption taxes (expenses): which concern consumption expenses (excise

duties, VAT).

c) Depending on the purpose pursued there are:

- financial taxes (with fiscal character): which is established for the purpose of
obtaining the revenues necessary to cover the public expenses.

- order taxes: introduced with the intention of limiting some actions or to reach a
goal that is not fiscal in nature.

d) Depending on the frequency of their implementation, taxes may be:

- permanent: that is, it is instituted and collected periodically, it presents a certain

regularity (they are annual, quarterly, monthly, monthly, decadal, etc.), including
the taxes commonly practiced.

- extraordinary: it is introduced and collected only once (for example, wealth tax
and war profit).

e) After the institution that administers them, the taxes can be classified in:

- state taxes: which in the federal type states belong to the federation, to the states,
provinces or regions, and in the unitary type states belong to the central state
administration. The most numerous and important taxes are included in this
category.

- local taxes: which are communal and of the territorial administrative body. They
are considered taxes of local interest.

g) After the impact on the payers, the taxes can be:

- direct (conventional) taxes: they are levied directly by the taxpayers, they are
established nominally, depending on the size of their income and / or their income.

In turn, direct taxes can be grouped into:

• real taxes (objectives): they are characterized in that they are established on the
taxable objectives, without taking into account the personal situation of the subject
of the tax.

• personal taxes (subjective): they are placed on the income or wealth of the
taxpayers and take into account their personal situation.
- indirect (unconventional) taxes: taxes that are levied when selling goods,
providing services or executing works.

58. Tell about the particularities of taxes compared to taxes:

Unlike tax, the texts give the payer the right to benefit from a direct and immediate
counter-service, but as a rule there is no sign of equality between the cost of the
service performed by the state or its institutions and the amount charged as a tax.

Taxes represent a compulsory monetary contribution with a non-refundable title,

due, according to the law, by the natural or legal persons for the income they
obtain or the assets they own. The tax is paid with a free title that does not concern
the execution of certain and concrete actions by the authorized bodies or the
persons in charge of their responsibility for or in relation to the taxpayers who paid
this tax.

The fee represents the payment made by the natural or legal person for the services
provided to them by the public institutions. The tax is a compulsory payment with
no gratuity that is not tax. Unlike the tax, the tax is created by:

• Inequitable payment

• the subject of the payments is precisely determined from the moment the service
is provided

• The tax represents payments made by natural or legal persons for the services or
works provided directly or indirectly by the special state institutions

Taxes and duties have the following common functions:

• contributions to the formation of general funds for the development of the

company

• redistribution of some primary or derived income

• regulation of economic or social phenomena

59. Determine the defining elements of the budget revenues:

The revenue of the state budget, represents that part of the public revenues due to
the central power of the state, to be used then for the purpose of fulfilling the
objectives and programs of the central power, during the last budget year.

The budget revenues have some common elements that facilitate their
determination, tracking and realization, such as:
1. the name of the budgetary income - is established in relation to the economic
and legal financial nature that characterizes it, eg. income tax, profit, buildings etc

2. the debtor or the subject of the tax - the taxpayers ie natural persons, legal
persons

3. the taxable object or matter - or the taxable base is the amount to which a tax
rate is applied for. to determine the value of the tax to be paid. In our country,
taxable or taxable goods are land, buildings, means of transport.

4. the evaluation unit - represents the element that expresses the unitary amount of
the budgetary income in relation to the calculation base. The unitary amount of the
income is established by a tax rate that represents the amount or percentage that is
applied to the taxable object. In practice, the tax rates have been established
differentially by applying a fixed quota or a percentage quota. The percentage
quota can be of three types:

a. proportional - when it remains unchanged

b. progressive - increases in relation to the increase in the value of the calculation

base

c. regressive - as the calculation base increases the tax rate decreases

5. the unit of taxation - is the unit by which the size of the taxable object is
expressed. Ex: he taxed the leu monetary income, dollar; to wealth tax: square
meter, ha.

6. the tax base (the way the tax is settled) - according to the taxable object or
matter, it consists of all the operations that the fiscal bodies carry out in order to
identify the taxable subjects, to determine the size of the taxable matter and the
amount of the tax. The bank notes the existence of a state tax claim creating for
taxpayers the obligation to pay the tax.

Tax filing methods:

i. direct - it is made on the taxpayer's tax return (the taxpayer is obliged to keep a
record of the income and expenses, to draw up a balance sheet and to submit to the
tax authorities the tax returns from which the income is obtained) and on the basis
of the declaration of a third person, the size of the taxable object is established on
the basis of the written declaration of a third party who fixes or knows the size of
the taxable object
ii. indirect - implies the identification and evaluation of the budgetary income by
reference to the external aspect of the taxable object

iii. the method of settlement on a lump sum basis - the taxing agent and the payer
jointly determine the approximate size of the taxable matter after which the tax will
be paid

iv. the administrative method - the fiscal agent unilaterally determines the size of
the taxable matter based on the data existing at the headquarters of the financial
body.

7. collection of the budgetary income - the collection of the budgetary income

consists in the effective realization of the value amount of money and is realized
through:

a. direct payment - consists of the payment due which the taxpayer makes directly
in the account of the state budget on his own initiative within the established term.

b. withholding and payment - is applied when the debtor is the employee of some
units and receives from them income that are taxable sources. The tax is calculated
and automatically deducted after which it is paid to the state budget, the debtor
receiving from the employer a net income

c. application of tax stamps - consists of the application and cancellation of tax

stamps on issued documents that are subject to a certain tax.

8. payment terms - they are fixed by law, usually they are imperative and their non-
compliance is sanctioned with increases

9. Facilitation, rights and obligations of debtors - are elements that the law
provides for the taxpayer to benefit from certain advantages for the benefit of the
state fiscal policy. Facilitation involves the reduction or exemption of taxes. The
rights derive from the general rules of the financial-fiscal legal relationship, the
debtors being passive subjects. Obligations - taxpayers are obliged to make
available to the tax authorities all the documents and to provide all the information
for the exact establishment of the taxable matter

10. the liability of the debtors - if they do not fulfill their fiscal obligations, the
taxpayers answer administratively, civilly, criminally in relation to the facts
committed.
11. qualification of budgetary revenues - gives the possibility of establishing the
central or local character of a budgetary revenue in order to establish to which
accounts the tax or tax to be charged to the taxpayer is to be rectified.

62. The total revenue of the state budget,

in 10 months of 2019, constitutes 32 118.9 million lei, higher by 7.6% compared

to the similar period of last year. This is due to the increase of the general and
collected revenues by 8 ,3%.

The State Fiscal Service, through its actions managed to determine the increase of
the revenues by 3.9% compared to the same period of 2018, amounting to 14 112.4
million lei. "For us, the attitude of the entrepreneurs towards the activities of
collecting taxes matters a lot - that is why we intend to intensify the consultative
mission of the Treasury, to help the entrepreneurs to act according to the legal
framework," said the Deputy Prime Minister, Mr. Serghei Pușcuța.

The Customs Service managed to collect from the procedures administered by

Customs 18 557.2 million lei, this amount being 6.6% higher compared to the
similar period of 2018. "And on the dimension of the Customs interaction with the
economic operators and the natural persons of we also have the task of improving
public services. I urged the interim director of the Customs service to find ways to
streamline customs procedures and to look at how the procedure for companies and
individuals can be simplified. We believe that public services can be greatly
improved and we will deal with this, "added the Minister of Finance.

Thus, out of the total amount of general and collected revenues (31,829.8 million
lei), tax and tax receipts constitute 29 617.9 million lei, which is 6.3% more than in
the same period of the year. last.

At the same time, the expenses of the state budget constituted 34 335.5 million lei.
Compared to the similar period of 2018, they are higher by 15.3 percent. The
execution of the state budget, at the end of October 2019 ended with a deficit in the
amount of 2 216.6 million lei.

63. public exenditures

Through the public expenses, the state covers the public needs of goods and
services considered priority in each period. Public expenditures express economic-
social relations in the form of money that manifests itself between the state, on the
one hand, and natural and legal persons, on the other hand, on the occasion of the
distribution and use of the financial resources of the state, in order to carry out its
functions. The economic content of public spending is closely linked to their
destination, some public spending expressing a definitive consumption of gross
domestic product, and others an advance of gross domestic product.

Public expenditure means only those expenses that are covered from the budget of
the central state administration, from the local budgets or from the state social
insurance budget.

64. The classification of public expenditures is based on several criteria:

1. Administrative classification - on the criterion of institutions through which

public expenditures are made (ministries, autonomous public institutions, territorial
administrative units, etc.).

2. The economic classification - on two criteria: the purpose for which the
payments are made (current or operating public expenses and public capital or
investment expenses); of the existence or not of a consideration (public expenses
of public services, called and administrative and public transfer costs).

3. Functional classification - on the criterion of the sectors of activity to which the

public financial resources are distributed (a) in the social field: education, health,
social protection, etc .; b) in the field of research; c) in the economic field
(investments, granting of subsidies and facilities; d) in the field of national defense
and security; e) in the central and local public administrative field; f) regarding the
interests related to the public debt).

4. Financial classification - on the criterion of the moment of the effect and of the
effect they had (the definitive public expenses characterized by the fact that they
are finalized with payments at firm maturities, certifying the total liquidation of the
state's employment for the expenses stipulated in the budget; temporary public
expenses: most are treasury operations followed by payments with certain
maturities; virtual public expenses: which the state will carry out under certain
conditions only).

5.And on the criterion of the manifestation form (with / without consideration;

definitive / provisional; special / global)

41. Evaluate the elaboration of the draft state budget of the Republic of Moldova:
This stage starts during the year. Thus, by the end of each budgetary year, it will be
possible to reach the adoption by the parliament of the elaborated budget. Min.
Min. Financing thus from the methodological point of view in the elaboration of
the project of the state budget, the important role is the evaluation or estimation
and the calculation of the assessment or estimation and the calculation of the
budgetary revenues and expenses as well as the methods used for this purpose. The
following methods are used to estimate income and expenses:

• autonomous method

• the morning of the increase

• direct evaluation method

The autonomous method is based on the preparation of the budget of revenues and
expenditures of the last budget whose financial year is completed and the
evaluations formed are influenced by the changes in the financial-fiscal legislation.
This method does not require a large volume of work but it has a disadvantage.
which is broken by reality, because the economic and social functions that were 2
years ago are not maintained during the elaboration of the state budget.

The major method is based on the results of the state budget execution for the last
years, determining the rate of growth or, if necessary, the decrease of the revenue
and budgetary expenses.

The method of direct evaluation involves performing calculations for each source
of income and for each category of expenses. Regarding the budget proposals in
the Republic of Moldova, they are represented by the public authorities according
to the structure and the content determined by Min.Finances include: the revenues
and expenditures realized in the last budgetary year, the incomes and expenses for
the future, estimated for at least 2 years after the year future. In the procedural
unfolding of the elaboration of the state budget project, a special role is played by
the services for the elaboration of the budget projects (According to art. 17 of the
law on the budget system and the budget process, the basic actions necessary for
the elaboration of the state budget project are presented Min Finance for the
Ministry of Economy, which presents the forecast of macro-economic indicators
for the next budget year, the forecast of state social insurance indicators is
presented by CNAS as well as by the Ministry of Health and social protection.
Indicators of Compulsory Health Insurance Funds, National Bank presents the
forecast of the balance of payments of credits, and of the external obligations. The
Ministry of Finance receives the budget proposals submitted by the public
authorities and at a date established by the Minister examines them jointly with the
representatives of these authorities with the right to ultimately decide to return to
the Ministry , before lays all the revenue and financial expenses. The draft state
budget together with the explanatory note submits and the annexes submit to the
government the state budget notifications on an asset.
42. When approving the provisional budget, the budget managers must ensure that
the provisional budget is correlated with the annual budgetary draft, so that the
volume of the expenditures executed from the provisional budget does not exceed
the volume provided in the annual budget project or is not outside it. 520. In
addition to the general distribution procedures, described in Chapter IX of the Set,
in the case of the distribution of the approved budget, which replaces the
provisional budget, there are some specific features: a) In the process of
distributing the budget that replaces the provisional budget, the limits are verified
with the approved budget. , as well as the volume executed from the provisional
budget. The allocation limits for the distribution of certain levels of the budget
classification must meet the following conditions: - to be within the approved
budget volume or the limit communicated by the hierarchically superior authority /
institution, and - be equal to or greater than the volume executed in the provisional
budget per the respective budget line. b) after the completion of the distribution of
the approved budget, the limits of the distribution of the provisional budget with
the limits of the distribution of the approved budget take place. When replacing the
limits, the free balance of allocations for each budget line is recalculated and
verified with the volume of commitments assumed based on the limits of the
provisional budget. If the balance of allowances is negative, which means that the
volume of commitments exceeds the approved limit, then the budgetary authority /
institution is obliged to revise its contractual commitments in order to bring them
into line with the limit and has two options: a) by redistributing the limits or b) by
termination of the commitments. c) the budgetary authorities / institutions that
have distributed the limits with the condition that the volume of the commitments
is not greater than the balance free of allocations, they can start the execution. The
authorities / institutions, which do not fulfill this condition, cannot start the
execution until they comply with the limits with the commitments assumed.521.
The flow of activities to replace the provisional budget with the approved budget is
shown schematically in figure 8.2. In case of necessity, the budget manager may
establish certain additional procedures for the procedure of substituting the
provisional budget with the approved budget, which will be communicated to the
budgetary authorities in a circular

43. Pursuant to the Law on public finances and fiscal-fiscal responsibility, the
budget administrator is authorized to temporarily block certain categories of
budget allocations, with the exception of payments for servicing the state debt /
administrative-territorial units, in the following cases: a) if the execution analysis
budgetary statements attest the worsening of the level of the budget balance,
approved by the annual budget law / decision and established as quarterly
forecasts; b) if the limits of allocations in the draft budget to be approved are
smaller than those of the provisional budget to be executed; c) if proposals to
amend the budget are initiated. The budget administrator performs the blocking,
with the information of the budgetary authorities / institutions and of the
Government / representative and deliberative authorities, according to the
circumstances that determined this action. The decision to block the budgetary
allocations is issued for a period that does not exceed 60 days, in the table format.
Until the end of the blocking period, the budget administrator can cancel the
decision or modify the term indicated in the decision to block the budgetary
allocations. The amount for the lock indicated in the decision cannot exceed the
volume of this balance.

The methodological set regarding the elaboration, approval and modification of the
budget. In the period of blocking of the allocations, the budgetary institutions are
obliged not to make commitments for the financing of the blocked spending
programs. If the actions related to the decisions to block the allocations do not
ensure that the budget balance is maintained within the limits set by the annual
budget law / decision, the budget administrator launches the procedure for
modifying the corresponding budget.

44. Establish the procedure for executing the financial control:

The financial control procedure is made up of a set of documents and operations

regarding the organization, development and exploitation of the results of the
control action. The results of the control action are determined precisely by the
way of programming and organization, thus ensuring the order in the work. The
financial control procedure is carried out on the basis of a well-defined plan, in a
certain order, which can be grouped into six stages. The first stage consists in the
preparation of the financial control team, by informing and documenting the legal
provisions regarding the specific of the unit to be controlled, the normative acts of
economic-financial character, the analysis of the previous control documents, the
measures taken following the verifications, the notifications made. by the financing
bank, those of the companies with which it has economic ties. The training of the
control team plays an important role, as it gives the possibility to establish the
basic problems and to ensure the quality of the control. The second stage is the
presentation at the unit where the control is to be carried out. The control bodies
ask the unit management to support the control in good conditions, by providing
them with all the necessary materials. The third stage is the organization of the
activity of the control team. After the findings made following the information, the
documentation, a work plan is drawn up which sets out the objectives included in
the control theme, the methods used etc. The more this plan is drawn up, the higher
the quality of control. Another stage is the carrying out of the control action, which
consists in the proper verification of the acts and operations, the legality, the
necessity, the opportunity, the economics and their realization. The control is based
primarily on data from the accounting records, but they are not sufficient, which is
why the other documents and records that are not of an accounting nature are
controlled. By thematic control of documents and records, a complete picture can
be obtained on the content of the operations and economic processes of the
controlled unit. But the economic processes are clearly reflected in the synthetic
and analytical indices included in the budgets of incomes and expenses. The
control bodies, in case of finding frauds, displacements, deficiencies in
management or if the documents are dubious, a cross control must be performed.
For this it is necessary to lift the researched documents, leaving in their place
children. It is very important that documents be picked up immediately so that they
are not altered or destroyed. During the inspection, in case any deviations are
discovered, committed consciously or unconsciously, the culprits will be asked to
give explanations in relation to that problem. Another stage consists in the drafting
of the control documents, these consisting in the substantiation of the conclusions,
the findings and the proposed measures, the presentation of deviations and the
legal provisions included, the responsible persons, their position in front of the
control team, the point of view of the control team and the definitive conclusion. In
this stage it is synthesized, the findings made during the control are finalized, the
acts being done during this time and not at the conclusion of the control, this would
lead to the difficulty of the valorisation of the acts. The last stage consists in
capitalizing on the control action, which is materialized by taking measures and
following the executions by the unit that ordered the control, as a result of the
findings made in documents. The main purpose of exploiting the results is to
remedy the deficiencies. For this, a plan of measures will be drawn up, the control
bodies having the task of granting the necessary support to the unit to achieve it.
We can conclude that if all these moments are taken into account when carrying
out the control, it will have the desired efficiency, discovering - the deficiencies are
timely, ensuring the operative measures that are required.

45. Argue the correlation of the legislative and executive power in the budgetary
procedure.

As mentioned above According to the law on the budgetary system and the
budgetary process, the Government presents to the parliament by October 1 of each
year the draft state budget. is elaborated on the basis of the information and reports
presented by the public authorities
The parliament after receiving from the government the project informs the court
of accounts, which gives an opinion to the parliament and the latter proceeds
further.

Analyzing this stage we can realize that the links between these powers of the state
are tight.

46. .Identifies the continuity of the state social insurance budget:

BASS is the annual care financing plan that reflects the establishment, distribution
and use of the funds needed to protect pensioners, the employee and a family.

BASS is a component of the national public budget.

The content must look at two aspects:

1.The income includes:

- the contribution for the state social insurances paid by the economic agents and
institutions;

- the contribution of employees and other insured persons;

- contributions for private unit social data insurance based on free initiative;

- interest to be part of accounts;

- it contributes to the differences between the employees and the pensioners who
combine the care of the spa treatment or the rest.

1.The expenses include:

- pensions (for work submitted and age limit, invalidation).

- social insurance benefits and assistance (deeds of assistance, care of the sick or
disabled child);

- referring to spa treatment and rest;

- expenses with the payment of postal taxes caused by the transfer of pensions;

47. Select the features of BASS execution:

The implementation of the BASS consists in the realization of the contribution and
the other income, in practical correlation necessary with the payment of pensions,
allowances and financial aid granted from this budget.

The particularities that characterize the execution of BASS refer in particular to:

1. Earned income

2.Cheltuielile

The revenues of the state social insurance budget come from the social insurance
contributions (23angaj / 6sal), from the transfer to the bug. from st. and from other
income (from interest, from increases for late payment of contributions)

The expenses of the state social insurance budget cover the value of the social
insurance benefits from the public system, the expenses related to the organization
and functioning of the public system, the financing of own investments, other
expenses provided by law.

From the revenues of the state social insurance budget, up to 3% is drawn annually
for the establishment of a reserve fund.

The cumulative reserve fund may not exceed 50% of the level of expenditure for
the respective budget year.

The reserve fund is used to cover social insurance benefits in highly motivated
situations or other expenses of the public system, approved by the law of the state
social insurance budget.

48. Formulate BASS adoption:

This budget is drawn up separately from the state budget, it includes the financial
relations for setting up, distributing and using the welfare funds needed for social
assistance and protection.

BASS is examined by the specialized parliamentary commission, the other

committees of the Parliament and the Legal Direction of the legislative body that
presents a report and opinion to the Plenary of the Parliament on the date
established by it. the date established by it.

Based on the opinions of the Standing Commissions and the opinion of the Legal
Department, the specialized commission prepares the report and the list of
recommendations on the BASS law and submits them to the Parliament.

The examination of the draft BASS law in Parliament is carried out in 3 readings.
In each reading, the Parliament examines the draft BASS law and the explanatory
note. The budget law can also be adopted in 2 readings if all the issues are
examined in a single reading.

The first reading examines:

- the main directions of the budgetary policy of the state social insurance;

- the basic concepts of the project;

Second reading:

- estimated revenues in the form of calculation and their structure;

- estimated costs: their structure and destination;

- budget deficit or surplus.

Third reading: Parliament at the presentation of the specialized Commission:

- examines the detailed allocations to be made;

- establishes the allocations that will be financed as a priority;

- examines other details in the draft law.

Until December 5 of each year the Parliament adopts the BASS law which will be
promulgated by the President of the State, then it will be published and enter into
force on January 1 of the following year. If the BASS law was not adopted at least
3 days before the end of the year budget, the BASS Law of the previous year
applies.

50. Establish the place of local budgets within the B.P.N.

In order to appreciate the place of the local budgets in the system of the
contemporary state budget, we use the weights that have the incomes and the
expenses in the total of the consolidated ones. Transformations from the state
budget to the rational budgets, the central budgets of UTA Gagauzia, the budget of
Chisinau municipality, from these budgets to the local budgets. When drawing up
local budgets, account is taken of:

• Within the term established by the Ministry of Finance the finance directions of
the local public authorities submit to the M.F. for the analysis, the forecast of all
the types of taxes and taxes to be collected in the next year as well as the
projections of the local budgets of level 2

• Within 30 days from the date of publication of the budget law, the local public
authorities bring the approved budgets

• Within the term established by M.F. the finance departments present M.F.
quarterly and annual reports on the execution of the respective budgets.

51. Tell about the autonomy of local public finances.

Local public authorities are a territorially delimited human collectivity that have
different public authority than central state ones. Their financial autonomy is
absolutely necessary because the autonomy, it would not be possible to manage
without the financial authorities that ensure the material support of the functioning,
the local communities know their own possibilities regarding the resources of
public origin, but especially the needs regarding its expenses must be covered for
the production of local public services. The autonomy of the local public finances
is:

• A local clectivity has the right to adequate own resources that it can freely
dispose of in order to exercise its attributions

• The financial resources of the local community must be proportional to the

responsibilities established by the constitution

• Protection of the weaker local authorities from a financial point of view

• At least part of the financial resources of the local community must produce
taxes, local taxes from the proportions established by the law

• In order to finance their own investment objectives of local public authorities,

they must have access to the payment of capital.

53. Interpret the process of second level adoption.

The finances of the administrative-territorial units are administered according to
the Law on local public finances according to the principle of local autonomy. The
budgetary process and the budgets of the administrative-territorial units of level 1
and 2 are independent of each other as well as of the state budget. Local public
authorities have their own tax base (distinct from that of the state) consisting of
taxes, the amount of which is established in the law on local public finances. and
financial matters necessary for other legislative acts. The local public authorities
also have other financial sources such as: local taxes, revenues and the assets of the
territorial administrative units and those provided for in the provision of services.
Non-tax revenues are not included in the calculation of general purpose transfers.
The procedures for the distribution of the own financial resources of the local
public authorities as well as any modifications of the legislation regarding the
functioning of the local public finance system must be coordinated with the
representative structures of the local public authorities. Any delegation of
competence is forbidden without the allocation of financial sources, necessary to
cover the constitution of the achievement of the respective competence.

55. Define the notion of tax and tax:

The tax represents a compulsory and non-reimbursable monetary contribution due

according to the state budget law by the natural and sworn person for the income
they obtain or the goods they own.

The fee represents the amount owed by the individual or sworn person for certain
acts or services performed or provided at the request and for the benefit of these
persons by the local body, pub institute.

57. Classify taxes:

There are many taxes and they are used. Their grouping into classes according to
common features is both a theoretical and a utilitarian necessity.

a) According to the form in which they are levied, taxes are classified

- taxes in kind:

- taxes in money:

b) After the object of the taxation, the taxes are grouped in:

- taxes on assets: which affect the movable or immovable property of the

taxpayers (tax on buildings, on land,
 - income taxes: which concern the incomes of individuals or companies (corporate
income tax).

- consumption taxes (expenses): which concern consumption expenses (excise

duties, VAT).

c) Depending on the purpose pursued there are:

- financial taxes (with fiscal character): which is established for the purpose of
obtaining the revenues necessary to cover the public expenses.

- order taxes: introduced with the intention of limiting some actions or to reach a
goal that is not fiscal in nature.

d) Depending on the frequency of their implementation, taxes may be:

- permanent: that is, it is instituted and collected periodically, it presents a certain

regularity (they are annual, quarterly, monthly, monthly, decadal, etc.), including
the taxes commonly practiced.

- extraordinary: it is introduced and collected only once (for example, wealth tax
and war profit).

e) After the institution that administers them, the taxes can be classified in:

- state taxes: which in the federal type states belong to the federation, to the states,
provinces or regions, and in the unitary type states belong to the central state
administration. The most numerous and important taxes are included in this
category.

- local taxes: which are communal and of the territorial administrative body. They
are considered taxes of local interest.

g) After the impact on the payers, the taxes can be:

- direct (conventional) taxes: they are levied directly by the taxpayers, they are
established nominally, depending on the size of their income and / or their income.

In turn, direct taxes can be grouped into:

• real taxes (objectives): they are characterized in that they are established on the
taxable objectives, without taking into account the personal situation of the subject
of the tax.

• personal taxes (subjective): they are placed on the income or wealth of the
taxpayers and take into account their personal situation.
- indirect (unconventional) taxes: taxes that are levied when selling goods,
providing services or executing works.

58. Tell about the particularities of taxes compared to taxes:

Unlike tax, the texts give the payer the right to benefit from a direct and immediate
counter-service, but as a rule there is no sign of equality between the cost of the
service performed by the state or its institutions and the amount charged as a tax.

Taxes represent a compulsory monetary contribution with a non-refundable title,

due, according to the law, by the natural or legal persons for the income they
obtain or the assets they own. The tax is paid with a free title that does not concern
the execution of certain and concrete actions by the authorized bodies or the
persons in charge of their responsibility for or in relation to the taxpayers who paid
this tax.

The fee represents the payment made by the natural or legal person for the services
provided to them by the public institutions. The tax is a compulsory payment with
no gratuity that is not tax. Unlike the tax, the tax is created by:

• Inequitable payment

• the subject of the payments is precisely determined from the moment the service
is provided

• The tax represents payments made by natural or legal persons for the services or
works provided directly or indirectly by the special state institutions

Taxes and duties have the following common functions:

• contributions to the formation of general funds for the development of the

company

• redistribution of some primary or derived income

• regulation of economic or social phenomena

59. Determine the defining elements of the budget revenues:

The revenue of the state budget, represents that part of the public revenues due to
the central power of the state, to be used then for the purpose of fulfilling the
objectives and programs of the central power, during the last budget year.

The budget revenues have some common elements that facilitate their
determination, tracking and realization, such as:
1. the name of the budgetary income - is established in relation to the economic
and legal financial nature that characterizes it, eg. income tax, profit, buildings etc

2. the debtor or the subject of the tax - the taxpayers ie natural persons, legal
persons

3. the taxable object or matter - or the taxable base is the amount to which a tax
rate is applied for. to determine the value of the tax to be paid. In our country,
taxable or taxable goods are land, buildings, means of transport.

4. the evaluation unit - represents the element that expresses the unitary amount of
the budgetary income in relation to the calculation base. The unitary amount of the
income is established by a tax rate that represents the amount or percentage that is
applied to the taxable object. In practice, the tax rates have been established
differentially by applying a fixed quota or a percentage quota. The percentage
quota can be of three types:

a. proportional - when it remains unchanged

b. progressive - increases in relation to the increase in the value of the calculation

base

c. regressive - as the calculation base increases the tax rate decreases

5. the unit of taxation - is the unit by which the size of the taxable object is
expressed. Ex: he taxed the leu monetary income, dollar; to wealth tax: square
meter, ha.

6. the tax base (the way the tax is settled) - according to the taxable object or
matter, it consists of all the operations that the fiscal bodies carry out in order to
identify the taxable subjects, to determine the size of the taxable matter and the
amount of the tax. The bank notes the existence of a state tax claim creating for
taxpayers the obligation to pay the tax.

Tax filing methods:

i. direct - it is made on the taxpayer's tax return (the taxpayer is obliged to keep a
record of the income and expenses, to draw up a balance sheet and to submit to the
tax authorities the tax returns from which the income is obtained) and on the basis
of the declaration of a third person, the size of the taxable object is established on
the basis of the written declaration of a third party who fixes or knows the size of
the taxable object
ii. indirect - implies the identification and evaluation of the budgetary income by
reference to the external aspect of the taxable object

iii. the method of settlement on a lump sum basis - the taxing agent and the payer
jointly determine the approximate size of the taxable matter after which the tax will
be paid

iv. the administrative method - the fiscal agent unilaterally determines the size of
the taxable matter based on the data existing at the headquarters of the financial
body.

7. collection of the budgetary income - the collection of the budgetary income

consists in the effective realization of the value amount of money and is realized
through:

a. direct payment - consists of the payment due which the taxpayer makes directly
in the account of the state budget on his own initiative within the established term.

b. withholding and payment - is applied when the debtor is the employee of some
units and receives from them income that are taxable sources. The tax is calculated
and automatically deducted after which it is paid to the state budget, the debtor
receiving from the employer a net income

c. application of tax stamps - consists of the application and cancellation of tax

stamps on issued documents that are subject to a certain tax.

8. payment terms - they are fixed by law, usually they are imperative and their non-
compliance is sanctioned with increases

9. Facilitation, rights and obligations of debtors - are elements that the law
provides for the taxpayer to benefit from certain advantages for the benefit of the
state fiscal policy. Facilitation involves the reduction or exemption of taxes. The
rights derive from the general rules of the financial-fiscal legal relationship, the
debtors being passive subjects. Obligations - taxpayers are obliged to make
available to the tax authorities all the documents and to provide all the information
for the exact establishment of the taxable matter

10. the liability of the debtors - if they do not fulfill their fiscal obligations, the
taxpayers answer administratively, civilly, criminally in relation to the facts
committed.
11. qualification of budgetary revenues - gives the possibility of establishing the
central or local character of a budgetary revenue in order to establish to which
accounts the tax or tax to be charged to the taxpayer is to be rectified.

62. The total revenue of the state budget,

in 10 months of 2019, constitutes 32 118.9 million lei, higher by 7.6% compared

to the similar period of last year. This is due to the increase of the general and
collected revenues by 8 ,3%.

The State Fiscal Service, through its actions managed to determine the increase of
the revenues by 3.9% compared to the same period of 2018, amounting to 14 112.4
million lei. "For us, the attitude of the entrepreneurs towards the activities of
collecting taxes matters a lot - that is why we intend to intensify the consultative
mission of the Treasury, to help the entrepreneurs to act according to the legal
framework," said the Deputy Prime Minister, Mr. Serghei Pușcuța.

The Customs Service managed to collect from the procedures administered by

Customs 18 557.2 million lei, this amount being 6.6% higher compared to the
similar period of 2018. "And on the dimension of the Customs interaction with the
economic operators and the natural persons of we also have the task of improving
public services. I urged the interim director of the Customs service to find ways to
streamline customs procedures and to look at how the procedure for companies and
individuals can be simplified. We believe that public services can be greatly
improved and we will deal with this, "added the Minister of Finance.

Thus, out of the total amount of general and collected revenues (31,829.8 million
lei), tax and tax receipts constitute 29 617.9 million lei, which is 6.3% more than in
the same period of the year. last.

At the same time, the expenses of the state budget constituted 34 335.5 million lei.
Compared to the similar period of 2018, they are higher by 15.3 percent. The
execution of the state budget, at the end of October 2019 ended with a deficit in the
amount of 2 216.6 million lei.

63. public exenditures

Through the public expenses, the state covers the public needs of goods and
services considered priority in each period. Public expenditures express economic-
social relations in the form of money that manifests itself between the state, on the
one hand, and natural and legal persons, on the other hand, on the occasion of the
distribution and use of the financial resources of the state, in order to carry out its
functions. The economic content of public spending is closely linked to their
destination, some public spending expressing a definitive consumption of gross
domestic product, and others an advance of gross domestic product.

Public expenditure means only those expenses that are covered from the budget of
the central state administration, from the local budgets or from the state social
insurance budget.

64. The classification of public expenditures is based on several criteria:

1. Administrative classification - on the criterion of institutions through which

public expenditures are made (ministries, autonomous public institutions, territorial
administrative units, etc.).

2. The economic classification - on two criteria: the purpose for which the
payments are made (current or operating public expenses and public capital or
investment expenses); of the existence or not of a consideration (public expenses
of public services, called and administrative and public transfer costs).

3. Functional classification - on the criterion of the sectors of activity to which the

public financial resources are distributed (a) in the social field: education, health,
social protection, etc .; b) in the field of research; c) in the economic field
(investments, granting of subsidies and facilities; d) in the field of national defense
and security; e) in the central and local public administrative field; f) regarding the
interests related to the public debt).

4. Financial classification - on the criterion of the moment of the effect and of the
effect they had (the definitive public expenses characterized by the fact that they
are finalized with payments at firm maturities, certifying the total liquidation of the
state's employment for the expenses stipulated in the budget; temporary public
expenses: most are treasury operations followed by payments with certain
maturities; virtual public expenses: which the state will carry out under certain
conditions only).

5.And on the criterion of the manifestation form (with / without consideration;

definitive / provisional; special / global)

67. Depending on the modalities of exercise:

 - Factual control - represents one of the most efficient forms of control by the fact
that it involves inventory, thus discovering possible shortcomings. This type of
control involves the on-site research of financial documents and operations.

- Documentary control - implies an indirect verification of economic operations in

documents.

68. Depending on the time of exercise:

- The previous control - is carried out before the economic operations are
performed, in order to prevent the financial discipline being violated. The control
is carried out by checking the documents through which patrimonial rights and
obligations are contracted;

- Concomitant control - it is performed at the same time as the economic

operations are carried out and is performed both by the persons in charge of the
unit, as well as by each employee individually, by self-control.

 - Subsequent control - is carried out, as the name implies, after performing the
economic operations. This type of control is exercised by specialized bodies by
studying the data recorded in the documents and evidences of the institution that
are the subject of the control.

Depending on the area of coverage:

 - The general control, also called background control, implies an exhaustive

control of the economic unit, being investigated all the sectors of activity and all
the operations performed.

- Partial control covers only a few sectors, possibly those that are subject to
suspicion.

 - Total control and by survey. The total control aims at an in-depth analysis of all
the documents and operations performed by the institution, while the control by
means of a survey is carried out by choosing documents or operations considered
representative for the respective institution.

- Mixed control includes a combined use of previous control forms.

Depending on the purpose pursued:

 - Thematic control - aims to research certain documents, concrete operations;

- Complex control - This type of control exceeds the economic boundaries, also
carrying out checks on the technical, social, or political aspects.
- Repeated controls - have the role of controlling the activity of an economic unit
by following its evolution in a certain period of time.

- Controls in the form of an investigation - they are based on notifications or

complaints, being carried out in special cases. In this case, the control is more
complex, which may involve criminal investigation bodies.

69. Depending on the time of exercise:

- The previous control - is carried out before the economic operations are
performed, in order to prevent the financial discipline being violated. The control
is carried out by checking the documents through which patrimonial rights and
obligations are contracted;

- Concomitant control - it is performed at the same time as the economic

operations are carried out and is performed both by the persons in charge of the
unit, as well as by each employee individually, by self-control.

 - Subsequent control - is carried out, as the name implies, after performing the
economic operations. This type of control is exercised by specialized bodies by
studying the data recorded in the documents and evidences of the institution that
are the subject of the control

70. The Main State Fiscal Inspectorate exercises the following powers:

a) it carries out the supervision of the activity of the territorial state fiscal
inspectorates in order to exercise the fiscal control, ensures the creation and
functioning of a unique information system regarding the taxpayers and the fiscal
obligations;

b) controls the activity of the territorial state fiscal inspectorates, examines the
letters, requests and complaints regarding their actions, takes measures in order to
make their activity more efficient;

c) issue orders, instructions and other acts in order to enforce the tax legislation;

d) organizes the popularization of tax legislation, responds to letters, complaints

and other petitions of taxpayers in the established manner;

e) performs fiscal controls;

f) organizes and performs, as the case may be, forced execution of fiscal
obligations;

g) examines appeals and issues decisions on their side;

h) exercises control over compliance with the tax legislation in the activity of
customs bodies and local tax and tax collection services and presents to the
competent authorities proposals regarding the liability of the officials of these
authorities that have violated the tax legislation;

i) organizes various contests, with the stimulation from budgetary sources of the
taxpayers who, directly or indirectly, have contributed to the improvement of the
fiscal administration process and / or to the increase of the receipts to the national
public budget. The competitions are organized in the manner established by the
Government;

j) collaborates with authorities from other states on the basis of the international
treaties to which the Republic of Moldova is a party and operates within the
international specialized organizations of which it is a member;

k) presents information and reports on fiscal obligations, including arrears, in

accordance with the instructions of the Ministry of Finance;

l) delegates the attributions to the territorial state fiscal inspectorates;

m) prevents, detects and closes the violations related to the repatriation of money,
goods and services from foreign economic transactions;

n) exercise other attributions provided by the legislation.

71. Law number 260 of 2017 on the organization and functioning The Court of
Accounts of the Republic of Moldova| external public audit (public sector / public
sector audit) - systematic processing of independent and objective evaluation
carried out to obtain a problem and establish an audited entity to manage / achieve
economically, efficiently and effectively, in terms of laws and Applicable Rules,
and if you can find situations in time to present the correct presentation;

72. The financial control procedure is made up of a set of documents and

operations regarding the organization, development and exploitation of the results
of the control action. The results of the control action are determined precisely by
the way of programming and organization, thus ensuring the order in the work. The
financial control procedure is carried out on the basis of a well-defined plan, in a
certain order, which can be grouped into six stages. The first stage consists in the
preparation of the financial control team, by informing and documenting the legal
provisions regarding the specific of the unit to be controlled, the normative acts of
economic-financial character, the analysis of the previous control documents, the
measures taken following the verifications, the notifications made. by the financing
bank, those of the companies with which it has economic ties. The training of the
control team plays an important role, as it gives the possibility to establish the
basic problems and to ensure the quality of the control. The second stage is the
presentation at the unit where the control is to be carried out. The control bodies
ask the unit management to support the control in good conditions, by providing
them with all the necessary materials. The third stage is the organization of the
activity of the control team. After the findings made following the information, the
documentation, a work plan is prepared in which the objectives included in the
control theme, the methods used, etc. are provided. The more this plan is drawn up,
the higher the quality of control. Another stage is the carrying out of the control
action, which consists in the proper verification of the acts and operations, the
legality, the necessity, the opportunity, the economics and their realization. The
control is based primarily on data from the accounting records, but they are not
sufficient, which is why the other documents and records that are not of an
accounting nature are controlled. By thematic control of documents and records, a
complete picture can be obtained on the content of the economic operations and
processes of the controlled unit. However, the economic processes are clearly
reflected in the synthetic and analytical indices included in the revenue and
expenditure budgets. The control bodies, in case of finding frauds, displacements,
deficiencies in management or if the documents are dubious, a cross control must
be performed. For this it is necessary to lift the researched documents, leaving in
their place children. It is very important that documents be picked up immediately
so that they are not altered or destroyed. During the inspection, in case any
deviations are discovered, committed consciously or unconsciously, the culprits
will be asked to give explanations in relation to that problem. Another stage
consists in the drafting of the control documents, these consisting in the
substantiation of the conclusions, the findings and the proposed measures, the
presentation of deviations and the legal provisions included, the responsible
persons, their position in front of the control team, the point of view of the control
team and the definitive conclusion. In this stage it is synthesized, the findings
made during the control are finalized, the acts being done during this time and not
at the conclusion of the control, this would lead to the difficulty of the valorisation
of the acts. The last stage consists in capitalizing on the control action, which is
materialized by taking measures and following the executions by the unit that
ordered the control, as a result of the findings made in documents. The main
purpose of exploiting the results is to remedy the deficiencies. For this, a plan of
measures will be drawn up, the control bodies having the task of granting the
necessary support to the unit to achieve it. We can conclude that if all these
moments are taken into account when carrying out the control, it will have the
desired efficiency, discovering - the deficiencies are timely, ensuring the operative
taking of the necessary measures.

73. The on-site financial control is the process of estabilizing the existence and
deposit of material materials for storing the money and the way of carrying out the
economic activity.

The main object for the real control refers to the exact determination of an existing
quantity and valorizer, the state of care found, the stage and the way of processing
the observance of the legality in their right.The main methods of sound control are:
a.inventory b.technical expertise and laboratory analysis c.direct observation d.
physical inspection a.Inventory is as an objective finding at a given moment an
existing and qualitative quantity of an activation element and of liabilities of a
management unit. b.Technical expertise and laboratory analysis are ways of
controlling the financing of care used to establish material value integrity, quality
of products, use of labor, c.Direct observation will be used when the control body
combines on-site to find the current ones from documents. d.The physical
inspection consisted of active examination and other resources, there is a security
proof for strengthening the findings

75. Article 33. Audit procedure

    (1) The audit procedure shall be carried out in accordance with this law, the
international standards of the supreme audit institutions, as well as the regulations,
manuals and guides of the Court of Accounts elaborated according to them.

    (2) If the deviation from the provisions of the legislation is found in the audit
process, these, as well as the causes that caused some damage, shall be
communicated to the management of the audited entity, which is obliged to take
measures to recover the damage found.

   (3) The draft report of the auditor is presented, by the public auditor responsible
for the audit mission, to the head of the audited entity for comments
(explanations). In the case of the financial audit, the audited entity will have to
submit a written statement regarding the findings of the public auditor on the
financial statements.

    (4) The audited entity shall submit to the audit team, within 15 working days of
receiving the auditor's draft report, the comments (explanations) on its behalf, in
written form, as well as the documents it considers relevant. Within 5 working
days of receiving these comments / documents, the audit team examines them and
informs the audited entity about the results of the examination, these being briefly
reflected in the auditor's final report. If the entity does not agree with the results of
the examination, it submits in writing the disagreement, within 3 working days, to
the audit team to be annexed to the auditor's final report.

 (5) Working documents may not be presented to third parties, except in cases
provided by law. These will be kept in the archive according to Law no. 880/1992
regarding the Archive Fund of the Republic of Moldova and according to the
procedures stipulated in the regulations of the Court of Accounts

76. - verification of the form of formation of public funds;

- verification of the use of public funds;

- verification of the administration of a public heritage.

77. The legal liability, as a form of social responsibility, consists in the legal
relations that arise as a result of an unlawful act, and which includes, on the one
hand, the right of the injured person and of the society in general to obtain the
damage caused and to restore the order. of law, and, on the other hand, the
obligation of the guilty to cover the damage and to obey the legal sanctions
attracted by the conduct to contravene the law and the other rules of social
coexistence

78.Criminal Code-

Offenses committed in connection with the conduct of public expenditure-

Exceeding the expenditure ceilings established by the annual budget law and
committing additional expenses to the budgetary funds allocated to fulfill certain
tasks or to achieve certain investment objectives, either referring to the budget
credits approved for the state budget, or referring to the budget credits approved
for the budget. locally, it is an offense incriminated as such by Law no. 500/2002
of the public finances (art. 71) respectively of the Emergency Ordinance no.
45/2003 of the local public finances (art. 70) offense that is punished with
imprisonment from one month to 3 months or with the criminal fine.

Offenses committed in connection with local public debt-They constitute

offenses and are punished by imprisonment from 1 month to 3 months or the fine
from 50,000,000 lei to 100,000,000 lei the following facts:the use of funds in lei
and in foreign currency, derived from sub-loans and state-guaranteed loans for
purposes other than those for which they were approved and guaranteed;the
provision, by the beneficiaries of the state guarantees or the beneficiaries of the
state sub-loans, of erroneous data for substantiating the presented documentation,
in order to obtain the necessary approvals for granting the guarantees or the sub-
loans, under the conditions of the present law..

Offenses that can be committed by persons having as service attributions the

management of the public patrimony or the spending of the public money-
Abuse of trust. The seizure of a movable property belonging to the public or
private domain of the state or to the administrative-territorial units or the
disposition of this good unjustly or the refusal to return it shall be punished by
imprisonment from 3 months to 4 years or with a fine.

Fraudulent management. Damage damages to a public authority or any public

entity in general, including autonomous management, a national company or a
commercial company in which the state or an authority of the local public
administration is a sole or majority shareholder, with remorse, when administering
or conserving its assets, by to the one who has or must take care of the
administration or conservation of those goods, he is punished by imprisonment
from 6 months to 5 years. The fraudulent management committed in order to
acquire a material benefit is punished by imprisonment from 3 to 10 years.

Embezzlement. The seizure, use or trafficking, by an official, in the personal

interest or for another, of money, values or other goods that he manages or
manages, shall be punished with imprisonment from one to 15 years. had very
serious consequences, the punishment is the imprisonment of 10 to 20 years and
the prohibition of some rights.

Diversion of funds. The change of the destination of the money funds or the
material resources, without observing the legal provisions, if the act caused a
disturbance of the economic-financial activity or caused a damage to an organ or to
a state institution or to another public unit is punished with imprisonment from 6
months at 5 years. If the act had particularly serious consequences, the punishment
is imprisonment from 5 to 15 years and the prohibition of some rights.

 Contrvaventional Code

Contraventions committed in connection with the conduct of public

expenditure-The foundation and approval of the expenses of the local budgets are
carried out in strict correlation with the real possibilities of collecting the
budgetary revenues, estimated to be realized (the violation of these provisions is
sanctioned with a fine from 10 to 20 million lei).

The retention and use of extra-budgetary revenues and the establishment of public
funds outside the budgets is forbidden, except in the case of special extra-
budgetary funds constituted by special laws. (violation of these provisions is
sanctioned with a fine from 5 to 10 million lei).

The approved budgetary credits can be used by opening credits carried out by the
authorizing officers within the limits of the approved amounts, according to the
destination established and in compliance with the legal provisions governing the
execution of the respective expenses. (violation of these provisions is sanctioned
with a fine from 10 to 20 million lei).

Contraventions committed in connection with the realization or

administration of public revenues and the patrimony of the state or the
administrative-territorial units.-In the case of the state social insurance budget
and the budgets of the special funds balanced by subsidies from the state budget, in
the form of consolidable transfers, the surpluses resulting from their execution are
regularized at the end of the budget year with the state budget, within the limits of
the subsidies received. (violation of these provisions is sanctioned with a fine from
20 to 30 million lei);

Contraventions committed in connection with public debt

The following facts constitute contraventions to the provisions of the present law:

a) non-reporting of the information required by the law regarding the loans;

b) failure to comply with the obligation of the beneficiary of the state guarantee to
notify the absence of the money funds to cover the obligations in the credit
agreement;

The violations mentioned above are sanctioned with a fine from 50,000,000 lei to
100,000,000 lei.

79.Law 181 art 80  restrictions and penalties provides that –

From the natural and legal persons who received from the budgetary authorities /
institutions financial means in the form of advance payment, including for goods
and services (except for construction, capital repair and purchase of anti-hail
missiles), for the period exceeding the term stipulated by the contract, shall be
charged to the respective budget an amount calculated according to the basic rate
applied by the National Bank of Moldova to the main short-term monetary policy
operations. The term stipulated by the contract for honoring the obligations of the
natural or legal persons towards the budgetary authority / institution may not
exceed 30 days from the date of receipt of the financial means to the settlement
account. At the same time, the budget also receives unused financial means (debt
due) at the time of control

The budgetary means, including those expressed by tangible assets, used by the
budgetary authorities / institutions, contrary to the provisions of the normative acts,
for granting a loan or financial aid to the natural and legal persons, are fully
received from them and paid to the respective budget without being subsequently
restored on the accounts of the creditors. For the entire period of use of these
means, from the mentioned persons a sum calculated according to the basic rate
applied by the National Bank of Moldova to the main short-term monetary policy
operations will be charged to the respective budget.

    (7) The sanctions specified in par. (2) and (6) are applied by the Financial
Inspection based on the results of the inspections performed.

    (8) For non-payment within the deadlines established by the normative acts of
the payments to the component budgets of the national public budget, delay
increases will be applied in the size and in the manner established by the Fiscal
Code and other legislative acts.

    (9) For the budgetary authorities / institutions and other beneficiaries of

budgetary means who did not submit the reports on the use of the allocated means
in time, they did not remove the violations and shortcomings found within the
established deadlines, as well as did not submit any other reports / documents /
information requested, Ministry of Finance temporarily suspends financing from
the state budget of budgetary authorities / institutions and other beneficiaries of
budgetary means