Rome, November 19, 2017 - 16.57
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Balancing the budget

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Balancing the budget

Each year, before the month of June, the Minister of Economics and Finance introduces a Draft Bill to Parliament for the purposes of balancing budget allocations. The Draft Bill takes into consideration the residual assets and liabilities ascertained during preparation of the statement for the period ending on the previous 31 December.

The balanced budget is therefore the legal/accounting instrument used to update the annual forecast budget according to the economic and financial events that have occurred and to the new situations that have arisen since its approval. It may be a question of corrections of forecast errors, of adjustments of budget allocations to residuals ascertained or of new expenditure requirements. In any case, in order to avoid alterations in the balance of the budget hypothesised at the time when the annual forecast document was approved, the accounting system provides that recourse is made to an appropriate substantive law.

Further variations in asset-and-liability and cash levels may also be presented to Parliament, although this must be done before 31 October.