Moldova PM Tofan targets public waste and exorbitant salaries
Moldova’s newly sworn-in Prime Minister, Vasile Tofan, outlined seven key priorities during the first meeting of his Cabinet on Wednesday, July 22. The government plans to curb exorbitant public sector salaries, eliminate wasteful state spending, reduce intrusive business inspections, and implement fiscal reform.
The Prime Minister demanded concrete action plans from his ministers within strict deadlines, stressing that institutional discipline must start at the top.
Curbing exorbitant salaries
Prime Minister Tofan directed Government Secretary-General Alexei Buzu to present a comprehensive reform package by July 31 to overhaul public sector compensation.
Tofan stated that public frustration over high government pay is entirely justified given the country's limited resources. The upcoming proposals will explore salary caps and the removal of unjustifiable bonuses ahead of a broader pay reform law.
Cutting public spending and travel
Addressing public waste, Tofan brought a government-branded t-shirt he received as a gift to the meeting to illustrate his point on fiscal restraint.
While appreciating the local product, he noted that 16 such items cost roughly €102 (approx. 2,000 MDL), arguing that officials should purchase their own items rather than use state funds. Tofan emphasized that multi-million euro savings begin with small daily decisions.
The government will also restrict official international trips, favoring virtual meetings whenever possible. The Prime Minister announced he will personally limit his own foreign travel to focus on domestic priorities.
Streamlining public administration
Optimizing government agencies remains a central pillar of the administration's plan. Ministries have been tasked with identifying duplicate roles and proposing agency mergers or liquidations by September 22.
Protecting businesses from intrusive audits
To improve the business climate, Deputy Prime Minister Eugeniu Osmochescu must deliver measures by September 9 to stop over-regulation and disruptive audits.
Tofan criticized oppressive inspection tactics, specifically calling for an end to early-morning raids by masked law enforcement on private companies. A dedicated email address, [email protected], was launched for entrepreneurs to report abuses.
Fiscal policy and tax adjustments
The Cabinet will unveil its official tax policy for the coming year by August 6. While a gradual harmonization of the Value Added Tax (VAT) is under consideration, Tofan confirmed that VAT on medicines will remain unchanged.
The Prime Minister warned ministers against making uncoordinated public promises, stressing the need for a unified government stance.
Unblocking investments and infrastructure
Tofan called for immediate solutions to regulatory bottlenecks affecting private investments, citing commercial air conditioning units stuck at customs since October due to import rules.
Additionally, the government plans to closely monitor major capital investments. Out of €485 million (approx. 9.5 billion MDL) allocated for 29 key infrastructure projects this year, only 25 percent has been spent so far. Progress on these projects will now be tracked via a public dashboard and reviewed at every Cabinet meeting.
The Tofan Cabinet was officially sworn in at the Presidential Palace on July 22 in the presence of President Maia Sandu and Parliament Speaker Igor Grosu, following a parliamentary vote of confidence on July 21.
Translation by Iurie Tataru
