The new analytical information that would derive from the implementation of the proposed amendment
of Table 11 would be very useful to allow a first significant study on the quality of public expenditure,
more significant than the one feasible using the existing information.
What we have illustrated until now would constitute the first and really decisive stage of the building
process of the information system on QPF. However, the logic of the satellite account allows to proceed
further. For example, an additional extension that might be logically and chronologically pursued could
aim at:
- adding some new items in the analysis of the expenditure by economic category in order to
provide further more detailed information; - identifying additional datasets – of monetary and/or non-monetary information – to be linked to
the enlarged set of information.
It is worth noting that the proposed possible enlargement towards a wider information system focused on
quality aspects of public expenditure is not a substitute of existing statistics (the compulsory part of table
11 of ESA95 revised transmission programme should principally remain unchanged, at least in the initial
stage of the implementation process) but should integrate them. The identification of specific sub-
categories and the use of specific accounting rules for some items do not represent proposals to change
ESA95 criteria, but simply additional tools to better analyse the qualitative structure of public finance
and its dynamic without loosening the explicit link with NA statistics.
3.3. Possible further pathways for an enlarged dataset on quality of public
finances
3.1. Adding some new items to the analysis of expenditure
In a longer term perspective, we suggest trying to introduce three main types of integrations to data
analysed by economic and functional category (according to table 3 above). The rank of the new items
listed below reflects the order of importance attributed to each of them. It is important to stress that these
are simple suggestions, therefore the list is open to the discussion.
I. using specific additional accounting rules
- providing the information to calculate investment expenditure (capital formation) gross of
sales of assets. At present, investment is calculated net of proceeds of sales, but it would be
interesting to measure the impact of new public initiatives on the productive capacity of the
economy instead of the impact on the stock of assets owned by GG; - valuating tax expenditure measures to support the productive process, in particular
investment initiatives and R&D private expenditure;
II. more details in economic classification