Parliament streamlines public administration structure and limits commercial activities of institutions

Parliament today adopted a set of legislative measures aimed at modernizing and improving the efficiency of public administration by reorganizing public institutions and introducing stricter rules governing their activities. The draft law was supported by 52 MPs.

The document aims to create a clear regulatory framework for a more efficient institutional system, in line with public administration reform priorities. The initiative was developed by the State Chancellery.

The bill sets rules for the establishment, organization, functioning, reorganization and dissolution of public institutions, as well as their duties and responsibilities. Its stated goal is to eliminate overlapping competences and clearly distinguish between institutions that develop public policies and those that implement them.

The draft law will ensure the creation of a flexible and efficient institutional system for central public administration by clearly defining institutional mandates and eliminating overlaps in responsibilities.

Public institutions will be created by the Government, at the proposal of central authorities, through decisions of the Executive, and at local or special level by local public administration authorities, through decisions of deliberative bodies.

Their reorganization or dissolution will be carried out by the founder or by Government decision, depending on the level of administration. The organizational structure, staffing levels and status of the institutions will be approved by the competent authorities.

The bill also introduces new rules on the management of public institutions. The founder will approve the staffing structure, select through open competition the members of supervisory boards and the directors of institutions, evaluate their activity, and approve operating regulations, strategic development programs and annual budgets.

At the same time, related legislation has been amended to prohibit public institutions from engaging in commercial activities, as well as from establishing commercial companies. Provisions regarding the compatibility of public positions with roles in the governing boards of public institutions have also been clarified.

Authorities point out that these changes are part of the reforms included in the Government’s Programme of Activities and in the Public Administration Reform Strategy for 2023–2030, aimed at aligning the Republic of Moldova with European standards.