Rome, November 21, 2017 - 20.21
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Economic/financial programming document

The economic/financial programming document

Before 30 June of each year, the Government presents the economic/financial programming document to Parliament for deliberation. The document defines the public-finance manoeuvre for the financial period included in the long-term budget. Its purpose is therefore to make Parliament, within reasonable time, aware of the Government's economic and financial policies. The Government, in turn, is politically committed to drawing up the subsequent annual forecast budget according to the criteria and parameters that emerge from the parliamentary debate.

In particular, on the basis of detailed and grounded assessment of the real state of affairs and of any variances with respect to the objectives set in previous economic/financial programming documents as well as on the basis of international economic/financial developments (in the European Community in particular), the following must be indicated:

a) the basic economic parameters used and the forecast trends for the major departments, the State sector revenue and expenditure flows and the consolidated accounts of the public administrations based on legislation in force, including the flow of resources intended for the development of the South, with an indication of the additional national funds and, for the discretionary part of expenditures, of the invariance of the services offered;

b) the macroeconomic objectives and, in particular, those relative to the development of revenue and employment;

c) the objectives, subsequently defined in terms of relationship to the gross national product, of the State debt requirements net of the public administrations' consolidated account, both net of and gross of interest, of the State debt and of the public administrations' account for each of the years included in the multiyear budget;

d) the objectives (consistent with those referred to in points b) and c) above) of the overall requirements, of current State deficits and of the public administrations' account, both net of and gross of interest, of the State debt and of the public administrations' account for each of the years included in the long-term budget, and of any variances with respect to the gradual evolution of public-finance flows as referred to in point a), and the relative causes;

e) the subsequent rules on the variation of revenue and expenses in the State assets and liabilities budget, as well as those of the State monopolies and public bodies included in the public administrations' account for the period to which the long-term budget refers;

f) definition of the interventions, including sectoral, connected to the public-finance manoeuvre for the period included in the long-term budget and necessary to achieving the objectives referred to in points b), c) and d) above, with respect to the rules referred to in e) above, with general assessment of the economic/financial effect attributed to each type of intervention in relationship to the tendential state of affairs.

In addition, the economic/financial programming document delineates, on the basis of the scenario described:

- the criteria and parameters for creating the annual and long-term budgets;

- the Draft Bills connected to the public-finance manoeuvre, each one of which contains homogeneous provisions according to topic and identifies the reference to the rules and guidelines referred to in e) and f) above.

Thus, the reference macroeconomic data, both domestic and international, are presented in the economic/financial programming document. On the basis of that data, the development perspectives for the economy for the subsequent three-year period are defined. In addition, the tendential framework towards which public-finance is moving and the corrective measures necessary in order to guide that framework towards the Government's objectives are identified. When the Stability Program is presented to the European Union bodies and any new forecasts of macroeconomic indicators and public-finance balances are made that diverge from those contained in the document previously approved, the Government must present to Parliament a briefing note justifying, by means of appropriate documentation, the variations made. Finally, the accounting system provides that the document is to be distributed to the Regions by the same date on which it is presented to Parliament and that the State/Regions Conference is to express its opinion before 15 July.