Servizio Studi della Camera - Dipartimenti Bilancio e Finanze-Fiscal federalism in Italy
During the 14th. and 15th. Parliamentary periods, the issue concerning fiscal federalism was the subject of analyses and bills, revealing the essential issues regarding the implementation of Article 119 of the Constitution. In the course of the 14th. Parliamentary period, the Government created the High Commission for the definition of structural mechanisms in the field of fiscal federalism, which produced a comprehensive report. During the 15th. Parliamentary period, the Government submitted a bill (A.C. 3100), “Parliamentary delegation enabling the Government in matters of fiscal federalism”. Likewise, the Lombardy region submitted its own proposal (A.C. 2844) containing “New provisions for the implementation of article 119 of the Constitution”, presented once more in the course of this parliamentary period (A.S. 316), with extremely limited formal variations. The Conference of regions and self-governed provinces for the opening of the 16th. Parliamentary period expressed its viewpoint in a report on the principles regarding the implementation of article 119 of the Constitution.
All such policy initiatives focus attention on some essential issues that may be summarized as follows:
1) practices for the implementation of the financing principle concerning public administration powers assigned to regions and local government entities;
2) sources of financing (own taxes and shares in taxes due to Inland Revenue) granted to regions and local government entities for the purposes under item 1;
3) government powers of coordination in matters of public finance and tax system;
4) relations between regional finance and local finance;
5) criteria and financial equalization for the benefit of regions and local government entities whose fiscal capacity does not generate sufficient revenues to fund their expenditures;
6) regulation of regions with a special statute.
Below is a brief description of the aforesaid issues, which concisely refers the main viewpoints that have been set forth.