Introduction sectionPublic Finance Decision - DFP
Public Finance Decision - DFP
Pursuant to Law No. 196 of 31 December 2009(PDF, 186 KB), the Public Finance Decision (DFP) which covers a period of at least three years, is a planning document superseding the Economic and Financial Planning Document - DPEF.
The Government submits to both Houses of Parliament a draft of the Public Finance Decision by September 15 of each year and Parliament adopts the relevant decisions (Art. 7, paragraph 2, subparagraph b of the above law).
The Public Finance Decision outlines (under Article 10) developments in the international economic and financial situation for the current year and the period considered, including forecasts of macroeconomic trends and policy scenarios in Italy for each year of the period considered. It also illustrates the key economic criteria used for the public finance forecasts in line with macroeconomic trends and policy scenarios.
The Public Finance Decision contains tables with year-on-year data (at unchanged legislation) of the General Government profit and loss account, of the cash and debit balance, both aggregate and broken down by the various subsectors making up General Government: Central Government, local government bodies as well as welfare and social-security agencies. It also contains year-on-year data of the overall tax burden resulting from the State budget net balance to be funded and the cash balance of the State sector. In addition to these data, it also provides a tentative estimate of the resources needed to deliver on the fiscal and economic policy commitments and programmes for the various ependiture areas (at unchanged policy). The Public Finance Decision identifies the policy targets of General Government and the measures of the package necessary to meet them, highlighting the contribution made by each sub-sector. The policy targets for each year of the period considered, as a ratio of GDP, are reported gross or net of interest payments and one-off measures that are neutral for the general government profit and loss account.
The Public Finance Decision outlines any statutory instruments linked to the public finance package, each of which contributes to meeting the policy targets set in the Public Finance Decision, including through changes in Italy’s legal and organisational structure and aimed at boosting the economy; it also provides figures relating to potential output and the structural indicators of general government accounts.
The Public Finance Decision reports on the content of the Convergence Pact, the Internal Stability Pact and the sanctions imposed on local authorities for failure to comply with the latter.
The date for submittal of the Public Finance Decision to Parliament has been brought closer to that for the submittal of the Budget bill (October 15).
The Government submits to Parliament an Update Note of the Public Finance Decision, both when it intends to change its policy targets and when the performance of public finance requires corrective action.
The Public Finance Decision includes two policy reports for each expenditure mission and the relevant multi-year laws, whose implementation progress must be reported.
The Public Finance Decision was drawn up only for 2010, since it was repealed by Law No. 39 of 7 April 2011(PDF, 107 KB) introducing the Economic and Financial Document - DEF. Some content the Public Finance Decision has now become part of Section II of the Economic and Financial Document.