commission on fiscal imbalance 合集

In particular with regard to the promotion of local

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Unformatted text preview: entralization of Italy is provided. Paragraph 1 makes a summary of the distribution of competencies on the expenditure side between the central and the regional level. A few data are provided on the share of resources attributed to different layers of government and the ex-post distribution of expenditure resources both by sector and economic category. The second paragraph deals with the level of decentralisation from the revenue side and describes briefly the changes which have taken place in the nineties from a system where local and regional finance were mainly dependent upon state transfers, mostly earmarked, to the greater fiscal autonomy introduced in 1999 and 2001. The third paragraph tries to picture the actual level of financial autonomy of the regions. The fourth highlights some of the limitation we encounter as part of a union. The fifth paragraph deals mostly with the same issues seen from a different angle, that of the Mezzogiorno, or so-called Objective 1 Regions in the European terminology. We describe an important experiment of actual decentralisation of expenditures being carried out in the last three years, the theoretical approach that was chosen to overcome the "gap" between the two areas of the country, financial arrangements being used to transfer European and National funds to Objective 1 Regions and the balanced cooperative and competitive model applied to regions to spur on the one hand their capacity to link and develop common projects and increase the competitiveness of their territories and, at the same time, expose them to competition and "market" incentives. 250 Commission on Fiscal Imbalance 2. REGIONAL AND LOCAL DECENTRALISATION: THE EXPENDITURE SIDE The definition of a new system of competencies was introduced with Act 59/97, better known as “Bassanini I”. Without modifying the Constitution, Act 59 used all the space available to implement by ordinary law a large decentralisation of functions. Indeed it reverses the traditional approach inherited from the Constitution of defining the competencies of Regions, by defining on the contrary the competencies of the central state, leaving all other competencies to local autonomies. The principle of vertical subsidiarity was fundamental: public activities were to be carried out by higher levels of government only where they could not be carried out by lower levels (for example, due to managerial efficiency or the impact of externalities). In relation to the distribution of functions among regions and local authorities, reference was made to the “principle of differentiation, in which functions are allocated taking into account different characteristics --associative, demographic, territorial and structural-- of the local authority”. Matters of explicit national interest remained within the sphere of the State (external affairs and trade, defense, public order and safety, justice, university and scientific research, large network infrastructure and heritage). Its implementation decree (Decreto Legislativo 112/98) transfers around 40% of the administrative functions from the Minis...
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This note was uploaded on 03/06/2013 for the course ECON 220 taught by Professor Paulo during the Spring '13 term at University of Liverpool.

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