The reform of the classification system for the State budget (which goes into effect with the budgeting
session for 2008) is aimed at achieving greater transparency of the public accounts and more flexible,
results-oriented public-budget management that will make it possible to adopt appropriate spending
policies and procedures for the sustainability of Italy's public finances.
2.3. The re-examination of parliamentary procedures
An important element of the reform is re-examination of budget procedures.
The parliamentary budget commissions are working on a proposal to improve budget approval process^9
aiming at better defining the Economic and Financial Planning Document (DPEF) with general
indications about possible measures to support strategic priorities, limiting the content of the Finance
Law and reducing the amendments.
This effort to make the budget procedures more effective and better consistent with government priorities
needs a change of the parliamentary procedures, to be approved by the majority of Parliament.
2.4. Performance based budgeting
Performance based budgeting is a kind of budget in which funds are allocated to measurable results
evaluated in the form of outputs and outcomes.
The new structure of the budget facilitates results oriented management of resources, aiming at shifting
the emphasis of budgeting, management and accountability away from a system focused on inputs and
formal compliance with laws towards results measured in the forms of outputs and outcomes.
Performance based budgeting is not an end in itself but it is a tool in order to boost performance,
accountability and overall outcomes of the public administration, since the budget is the most important
vehicle to respond to economic and social needs and priorities.
Measuring the efficiency of public administration is not an easy task due to the complexities in
measuring efficiency in the public sector and to the problem of isolating the effects of specific
institutional reforms on efficiency from other external influences.
Having regard to these complexities and in order to respond to the public expectations of high quality
services, the budget must be transparent, accessible and responsive to news demands and changing needs.
3. Open issues and possible further reform steps
The reforms taken by the Italian government are an important step in order to boost the efficiency and
effectiveness in delivering public services.
Some issues have yet to be solved and show that there is scope for improvement.
More specifically, it is necessary to improve the transparency of the budget, the full financial
accountability of public spending decision-making centres and greater administrative streamlining is also
needed and could be achieved by reducing the number of accounting documents.
It is also necessary to continue the spending review programme that has been initiated and work towards
mainstreaming better spending into central government practices as well as undertake a strong
(^9) See Parliament Report “Debate on the reform of budget approval process”, available at
http://legxv.camera.it/banchedatiKM/Documenti/Leg15/Dossier/Testi/BI0179.htm and
http://www.senato.it/service/PDF/PDFServer?tipo=BGT&id=264008