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Integrative notes to the state budget

Integrative notes to the state budget

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INTEGRATIVE NOTES TO THE STATE BUDGET

The Integrative Note attached to each estimate of the State Budget is governed by art.21, paragraph 11, point a) of the Law on accounting and public finance (Law No. 196 of December 31st, 2009), confirming the substance of art.2, paragraph 4 quater, of the abolished Law No. 468 of 1978, which established the content and structure of the Preliminary Note.

Under the new law, it is strengthened the request to represent the objectives related to each program expenditure.

This is a document of great importance, for the support in the planning of the use of public resources for the entire three-year reporting period of the budget. It complements and enriches the information of the state budget and is the mean by which each Ministry explains, in relation to expenditure programs, the criteria for the formulation of predictions, targets and indicators to measure them. The integrative Note is part of the wider planning process that begins with the general definition of the objectives of the Government, and their declination within the single administrations, passes through the verification of compatibility of the initial estimates of budget with the constraints and objectives of public finance, of responsibility of the General Accounting Office of the State, and concludes, after approval by the Parliament of the Budget Law, with the preparation of the annual Guidelines issued by the Ministers.

The integrative Note to the forecast budget finds its natural complement in the relevant annex to the State financial statements (integrative Note to the Final Statement) under article 35 paragraph 2 of Law 196/2009, which in turn has substantially confirmed the provisions of art. 22 of the abolished Law 468/1978 and in which must be explained the results achieved and the resources used in relation to those planned and the reasons for any discrepancies between the results achieved and the targets set under preparation of the budget.

The contents of the suppressed preliminary notes have been recalled annually in the communications for the forecasts published by the Ministry of Economy and Finance in the following stages:

• Forecasts from 2007 (comm. n. 18/2006), were drawn up specific guidelines and frameworks for the compiling;

• budget estimates from 2008 (comm. n. 21/2007), the content and method of completion of the preliminary notes have been revised following the introduction of the new classification of the state budget for missions and programs, in the context of a more results-oriented programming to achieve

• during the forecast 2009 (circular no 21/2008), was put in place a system of automated capture of information by the Administrations that has allowed to simplify the whole process of compiling, processing and transmission of the same notes, and at the same time to increase the degree of homogeneity of the information. This system has been upgraded during the forecast 2010 (comm. n. 21/2009).

Of great importance on the subject is also the Legislative Decree n. 150, of October 27th 2009, of implementation of the Law of March 4th 2009, n. 15 on the optimization of public labor productivity and transparency and efficiency of public administrations.

Such decree foresees that each administration shall draw up a plan of the planned targets over three years defined as "consistent with those indicated in the budget indicated in the programmatic documents of the Law 468/1978 and subsequent amendments", and develop indicators for measuring organizational and individual performance. Article 21 of Law 196/2009, paragraph 11, provides a link between the indicators identified with the Integrative Notes to the forecast budget and entirety of objectives and indicators of the internal management system of the performances recalled by the leg. decree 150/2009.