Stefano Blacks
In the latter period, they are discussing a lot of the Stability Pact in an important way that affects the ability for administrators local authorities to pursue their chosen political / administrative.
Based on my knowledge, I try to explain to readers what the Stability Pact and how it works.
The deal has its origins from the need to ensure a balance of public finances of the various states acceding to the European Union (Stability and Growth Pact). To achieve this balance, in Italy, for several years, the state has involved the regions and local authorities giving them specific goals through the Internal Stability Pact.
This is a method of calculation which, fished out some financial information, brings together the balance between revenue and expenditure, current expenditure, accounted for on an accruals basis, and the balance of investment spending accounted for using the principle of case, ie payments and receipts of the year. On the final calculation must be a net positive financial year for a predetermined amount and gradually increasing. This method of calculation does not consider revenue from recruitment mortgages and related outputs for repayment of loans.
In essence, as regards capital expenditure, including public works, for the purpose of calculating compliance with the Stability Pact, the countable income consist only of:
- capital revenue (such as the burden of 'urbanization)
- capital grants in respect of works to be carried on (government grants)
- revenue from sales of property that was the capital city
It' easy to imagine that if even a few years ago, for the creation of a ' public work, you could use public power for a mortgage, the exclusion of entry resulting from that mortgage from the mechanism calculation determines now almost impossible to invest in public works without breaking the stability pact (and suffer the serious consequences associated with it), unless you have high capital revenue (infrastructure costs), which s 'starts to divest public assets of the institution in favor of new works or the work is largely funded by government grants.
As for capital expenditure to be calculated with the principle of "cash" (ie income and expenditure actually registered in the year), in the past, some local administrators have tried to overcome this obstacle by providing equally construction of the works certainly necessary, and sending back the following year most of the payments relating to that work, pending the identification of additional revenue (excluding mortgages) that, for the purpose of compliance with the Stability Pact, could then allow time for the deferred payments.
In our town, from what has resulted from a recent statement by the Councillor for the Budget - Barigelli, published in the press, it seems that in recent years, to be able to respect the Stability Pact, has been just that. It speaks, in fact, moving to subsequent years of payments for about 660 000 € for the restructuring of the school "Crocioni.
A good way to respect the stability pact, without creating these problems in the future, that sooner or later would come to a head, it was rather to provide a positive balance in the current budget, through a substantial reduction in current expenditure. That surplus, he could contribute, for the purposes of calculation, to the goal set by the Stability Pact, without having to defer payments due.
From this point of view, unfortunately, in recent years, has not made this choice, indeed, thanks to higher revenues from infrastructure costs due to the boom (more than three million euro over the years) current expenditure have always traveled at a rate far too high and have been used several times to the use of part of the proceeds from the infrastructure costs to cover these costs.
Now, reading the 2010 budget of our municipality, there is a change of direction and a rebalancing of the current part of the budget but it is now clear that, pursuant to reducing current expenditure, is now scraping the bottom of the barrel.
To make matters worse is the recent maneuver occurred last July, in order to counter the growing public debt, substantially reduced transfers rule in favor of regions, provinces and municipalities (in revenue will have to pay additional reductions in current expenditure in addition to those already made, if you want to keep the balance on current account).
Local administrators, to any political party they belong to, are all agreed that both the latest maneuver in July untenable for the budgets of local governments and announced the inevitable cuts in services.
The same administrators are calling for a revision of the mechanism for calculating the stability pact, as conceived, is severely limiting investment in public works by local authorities. A recent conference organized by the Province of Macerata, it was found that would be more than 90 million € in 2009 the resources of local brands (excluding municipalities with fewer of 5000 inhabitants, outside the stability pact) have not invested in public works or goods and services.
At the same conference also emphasized the need by local government, they can count on stable resources over the long term, to allow a program of medium-and long-term investment.
At present, as the Councillor Barigelli also reported in a recent press article, you know the cuts made last July while maneuvering is not yet known the extent of revenue for 2011 resulting from the implementation of federalism tax, at least in part, should compensate for these cuts. It is believed that these
information should be known by citizens Ostrense make it clear to all that, unfortunately, we have entered a period of "lean." We must all make sacrifices and, most likely, we will waive the time for carrying out certain public works waiting for best times that I hope will come in the not too long.
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