Rome, November 20, 2017 - 08.46
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You are in: Home English Version > SICOGE > The Expenditure Process and the Legal System of Expenditure


The legal system of expenditure can be split into four stages which can be simultaneous on occasions. Said stages are:

- appropriation;

- settlement;

- ordering;

- payment.

The maximum limits of the planned allocations for the subsequent stages are set in the budget.

Appropriation is the legal process which generates the State's obligation (legally executed) to pay a set amount. Therefore during this stage, the reason for the appropriation is given and the restraint on the budget estimates established. Whatever the source of the appropriation, it is necessary that the commitments undertaken do not exceed the budget estimate or subsequent laws amending the budget. Appropriations may arise from:

- contracts entered into with the public administration;

- administrative documents other than the contract;

- definitive sentences which order the State to pay a set amount.

During the settlement stage, the precise amount of the expenditure previously undertaken is established and the figure of the creditor is identified. In order to settle the expenditure, the relevant administrative offices must have all the documentation needed to prove the right acquired by the creditor. During this stage of expenditure management, an order is given to the Treasury or other relevant offices to pay the previously settled amount. Depending on the form of payment, orders may be made through:

- computerized orders;

- credit orders;

- lists of fixed expenditure;

- special formats.

Computerized orders are documents issued by administrations (central or local).

Credit orders are expenditure documents issued by administrations (central or local) on Treasuries (central or provincial) through which funds are made available to appointed civil servants.

Ordering via lists of fixed expenditure is done through the payment of salaries, pensions, charges; these refer to expenditure which does not involve a single payment but which has lasting validity.

Payment represents the last stage of the expenditure cycle and is performed by the Bank of Italy.

Special forms of payment are established for payments concerning legal expenses, lottery victories, charges related to the public debt and foreign expenses.