ABSTRACT
Since 1996, the State General Accounting Department (RGS) has started to disaggregate the accounting data of the State budget and provides a database with the regional distribution of outflows. 20 Currently the series goes up to financial year 2011 and also contains provisional data for 2012. Because of the criteria adopted by RGS for regional allocation, four major inconsistencies emerge:
Lazio is attributed both expenditure related to services provided in favour of residents as well as that strictly related to the central administration;
defence expenditure is also allocated to the individual regions;
social contributions related to State personnel and transfers to social security funds intended to cover the ‘welfare’ component of INPS (National Social Security Institute) benefits are not regionalized;
only interest charges paid to Italian holders of government bonds are regionalized, however, with reference to the place of deposit bank thereof.
