LocationsLooking beyond the budget: Making every public resource count for Moldova’s development
August 6, 2026
Spending Review Workshop (30 June 2026)
The Republic of Moldova needs not only additional resources, but also the capacity to translate every available leu into better services, viable investments and tangible results for people. This is particularly important as the country continues to implement the reforms under the Growth Plan and make effective use of the support provided by the European Union. The Plan provides for up to EUR 1.9 billion for 2025-2027.
From “how much do we spend?” to “what do we achieve?”
Every family has expenses that cannot be postponed: housing, utilities, food, medicines or children’s education. But even when income and needs remain unchanged, it is useful for a family to review its budget from time to time.
It may be paying for a service it hardly uses anymore. A bill might be reduced through an investment that pays for itself over time. Some expenses made out of habit may no longer reflect current priorities. The money saved could instead be used for an essential repair, children’s education or an emergency reserve.
Such an analysis does not simply mean spending less. It means understanding more clearly where the money goes and whether it delivers the results the family needs.
A country’s budget is, of course, much more complex. Behind every allocation are institutions, public services, legal obligations and, most importantly, people. Nevertheless, the fundamental question remains relevant: are the available resources being used where they can deliver the best results?
This is the question that public spending reviews seek to answer.
More than a cost analysis
Budget discussions usually begin with how much is spent on education, health, social protection or infrastructure. A spending review goes further by asking what is achieved in return.
To what extent do public programmes continue to address the needs for which they were created? Do resources reach the people who need them most? Do any activities overlap? Can certain processes be simplified? Could some resources deliver better results if used differently?
A spending review is not an audit, nor does it begin with the assumption that budgets shall be reduced. In some cases, it may identify savings or resources that could be reallocated. In others, it may show that an important service is underfunded. Its purpose is to ensure that budget decisions are based more firmly on evidence, current needs and achieved results.
In Moldova, we developed this instrument together with the Ministry of Finance of the Republic of Moldova and the Ministry of Finance of the Slovak Republic. The work drew on Slovakia’s experience in modernizing public finances during the European integration process and on UNDP’s expertise in development financing. It forms part of a broader effort to strengthen development financing, informed in part by the Development Finance Assessment of the Republic of Moldova.
This approach was applied through spending reviews in the health and social protection sectors. In health, the options identified were estimated at USD 15.5 million. In social protection, the analysis indicated potential fiscal space of approximately MDL 2.2 billion - equivalent to US$130.5 million.
These options do not represent revenue or savings that have already been realized. They can, however, help the state preserve what works, improve less effective interventions and direct resources towards benefits and services that respond most effectively to people’s needs.
From pilot reviews to permanent practice
Moldova has since moved from reviews conducted in selected sectors to a process integrated into the public finance system. In December 2025, spending reviews were institutionalized through amendments to the legal framework and in June 2026 the Ministry of Finance approved a revised methodology.
The new methodology defines more clearly how spending reviews are prepared, conducted and monitored. It also integrates the Sustainable Development Goals and a gender equality perspective, allowing financial efficiency to be considered alongside the economic and social effects of public spending.
The 2026 cycle covers general and higher education, SME support programmes and agricultural subsidies.
In general and higher education, the question is not only how much the system costs, but also how effectively it responds to demographic change, the needs of pupils and students, and the skills that the economy will require in the coming years.
Institutionalization matters because it turns spending reviews from occasional exercises into a permanent practice. Year after year, the analysis can inform budget preparation, improve public programmes and support their adaptation to emerging priorities.
Why public spending reviews matter for the Growth Plan
In 2026, national public budget expenditure is estimated at almost MDL 155 billion, equivalent to more than 41% of GDP. Even relatively modest improvements in how these resources are allocated and managed can create room for better services and additional investment.
This capacity becomes even more important in the context of the Growth Plan for the Republic of Moldova. The Facility provides the country with an important opportunity to accelerate reforms and investment and advance its integration with the European Union.
For 2026, the budget provides approximately MDL 5.6 billion for measures related to the Growth Plan, including infrastructure modernization, economic development, support for businesses, agriculture and rural development.
However, access to financing does not guarantee results on its own. Institutions need to be able to plan and implement reforms, budget decisions must be well informed and projects need to be sufficiently mature to secure financing and be implemented. In other words, an increase in the volume of resources must be accompanied by improvements in how they are used.
The Growth Plan makes significant resources available to Moldova. The extent to which these opportunities are used effectively will also depend on the quality of the decisions, institutions and projects financed.
As with a family, a well-managed budget does not eliminate the need for additional income. It does, however, help ensure that both existing funds and new resources are used for what matters most. For Moldova, the central question is not only “how much do we spend?” but also “what do we change for the better with this money?”.