The PBO testified at a hearing before the joint Budget Committees of the Italian Chamber of Deputies and the Senate as part of the fact-finding inquiry into the outlook for the reform of budget instruments and procedures. In his testimony, the Chairman of the PBO focused on a number of issues concerning the existing calendar for submitting economic and financial policy documents and budget documents, as well as the content of those documents. In order to resolve the issues, the Chairman discussed a number of options for changes in the calendar in connection with the content of the policy documents.
The Chairman subsequently analysed the characteristics of the process of drafting the State budget and its structure, emphasising the scope available for improving its quality with greater centralization of the various phases of its formation and, conversely, greater flexibility in its implementation. The Chairman underscored the circumstance that going beyond the formal nature of the budget required consideration of the specification of the optimal features of the “budget unit” on which parliament votes. Attention then turned to the financing of the Budget Act in the light of the new budget rules introduced with the reform of Article 81 of the Constitution.
Another theme addressed concerned the supporting documentation to the budget. Enhancing the information content of the budget and the level of transparency is also necessary for the effective verification of compliance with European and national fiscal rules. The Chairman announced the imminent publication on the PBO’s website of an infographic to navigate the State budget, enabling easy consultation of its broad range of data.
Finally, the Chairman addressed the issue of new budget rules for local authorities, identifying critical issues in the introduction of mechanisms to allow local entities to use the scope for borrowing granted to general government during adverse phases of the economic cycle.