Giancane: National Cuts and Old Problems. We are not hiding difficulties but implementing recovery and showing loyalty.

The Court of Auditors found that the Authority, with institutional loyalty, pointed out once more that the regional finances are in troubles due to the rigidity of the historical current expenditure whose coverage is not fully ensured by current income revenues”. Regional Minister of Budget Gaetano Giancane commented on the checks of the Court of Auditors on the 2013 budget of Regione Campania; audits were carried out in compliance with the Decree Law no. 174 of 2012 to assess the compliance of Italian regions with the annual targets set by the internal stability pact, with the limit set as for debt financing and the lack of irregularities that could jeopardise the Authority’s economic and financial balances.

“This problem is even worsened by the national economic crisis that led the Government from 2011 to exceptionally reduce national transfers to regions with the understandable negative local effects”.  

“In 2010, Regione Campania’s budget was in a disastrous situation, as gathered in the report of the Ministry of Finances investigators who arrived after overrunning the 2009 Stability Pact. Thus, it was necessary to secure accounts and reduce as much as possible negative effects on citizens”.

“Recovery started with the approval of the financial stabilisation plan agreed with the Ministry of Finances, and with the actual implementation of the healthcare recovery plan”.  

“Nowadays, debt financing for investment expenditure is no more employed, providing local policies with the European funds, and the action and cohesion policy with the national resources; the budget surplus has not been used from 2011 to fund capital expenditure”.

“Moreover, from 2010 Regione Campania has always been abiding by the internal Stability Pact, giving a remarkable share of the pact to local authorities to cover investment expenditure. The healthcare deficit has been almost cancelled. Regione Campania has also ensured for 2013 the payment of healthcare and non-healthcare-related debts of the Public Administration, based on the Decree Law no. 35/2013, and will continue meeting the payment schedule set in 2014”.

“The 2014 budget has been approved by the Regional Council in the session of 30 December 2013, ensuring a planning tool within the time and with the procedures established by laws”.  

“Regione Campania’s recovery goes on by facing and solving progressively the serious problems that affect it and that, due to their complexity, cannot be immediately sorted out, at least as for those cases with occupational and social effects. This is why, 2013 budget can still be enhanced, as pointed out by the Court of Auditors, that, also reported about the Regione’s “institutional loyalty” that emphasised the flaw structural balance”.  

“As for the 2014 budget, approved on 30 December 2013, shunning a possible temporary management, the Executive Board declared, with an equal institutional loyalty, that this is an unprecedented budget with a structural balance, since current incomes correspond to expenses, real cash incomes without using free budget surplus, debt financing or new targeting of expenses, which generate debts or possible cash lack of coverage”.

“Concerning budget balances, through the regional Law no. 5 of 6 May 2013 (2013 budget) Regione Campania introduced a law that establishes that the expenses funded by general budget incomes occur within the limits of budget allocations and the actual cash availability”.  

“As for the 2013 final financial statement that is currently being drafted, it is important to point out, and this will make things look more concrete, that the use of incomes, already verified and in the 2013 financial statement is approximately one billion €, compared with the 2012 amount that was three billion and seven hundred €. Moreover, a reduction in the budget amendments occurred by about four billion compared with the ten billion € of 2012.

Regional Minister Giancane concluded: “This led a remarkable balance between the audits and current allocations and a reduction of allocation pending incomes cashed as clearance entry; in few words, a higher budget balance along with a further clearness of its data”.