Rome, November 23, 2017 - 19.35
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Cash Reports

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Cash reports

The cash reports give an account of the State sector's consolidated cash and of coverage of requirements. These reports, presented quarterly to Parliament, make it possible, first of all, to comply with the accounting principle of demonstrating the actual state of cash reserves month by month. Secondly, they make it possible to assess, with reference to the entire public sector, how much it is expected it will be necessary actually to pay out, taking into consideration how much has already been spent and how much must still be spent, on the basis of expenditure trends referred to the individual departments. This process thus makes clear the extent of the resources that must be available in order to carry out the forecast expenditures and identifies the means with which to meet these financial requirements. The process also identifies, when necessary, which expenditure channels it is appropriate to expand or reduce. Supervision and monitoring of this kind makes it possible to exercise greater control over Treasury flows and contributes to maintaining the requirements and overall indebtedness of the public sector within the limits defined by the European Stability Pact.

Before February of each year, Minister of Economics and Finance presents a report on the estimated State sector requirements for the current year as shown by State budget and by Treasury cash-management estimates. The report also deals with the financing of requirements as compared to the corresponding results from the previous year. It illustrates the criteria adopted in the formulation of the forecasts relative to the sections dealing with interest on public-debt securities. The report must be accompanied by a report from the Minister to be presented by the same date and containing the data relative to the state of the economy in the previous year and updating forecasts for the current period.

Before May, August and November of each year, the Minister presents a report on the results achieved with State-budget and Treasury cash management, respectively, in the first, second and third quarters of the current year. The report includes an update of the annual estimate. The estimate of cash forecasts for the entire public sector for the current year is presented along with these reports, on the basis of data submitted by municipalities and provinces via the Regions, and by other bodies, and prepared on the basis of homogeneous statements. This process identifies, in addition to collections and payments made during the year and in the previous quarter, the variations in financial activity (particularly with respect to Treasury and bank deposits) and in short- and long-term debt.

The report presented before 31 August also contains information on the nature and amount of residuals at the end of the preceding period and on the manner in which they have been subdivided according to the period of origin and to the annual rhythm of their removal. This information is prepared on the basis of data submitted by the parties concerned before 30 June. If all of the necessary data is not submitted, the State has the option to suspend payments to defaulting bodies. In order to allow the Government to have the reference framework relative to the state of cash within the entire public sector, Article 30 of Law 468 establishes a series of disclosure of data obligations on Regions, provinces, municipalities and health-care authorities.