1 Mariella Volpe - Simona De Luca Public Investment Evaluation Unit Ministry of Economy-Department...

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Mariella Volpe - Simona De Luca Public Investment Evaluation Unit

Ministry of Economy-Department for Development Policies (DPS)

Italian Evaluation Units Open Days July 3-6 2006

Measurement of public revenues and expenditures flows at territorial level

Construction and use of Regional Public Accounts (RPA)

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Indicators of the potential of the areas concerned with development policies

They describe final objectives in terms of • well-being• desired characteristics of regional economic systems• quality of services• desired distribution of public resourse

context indicators

• Pinning down regional weaknesses and strengths

• Reducing the degree of fuzziness of regional policy objectives

• Increasing the accountability of all the stakeholders involved in decision makin

policy effort indicatorsRegional Public Account (RPA)

• ascertain whether policies have been pursued appropriately

• identify the types of expenditure most successful in generating synergies

• undertake initiatives to analyse flows at the sub-regional level (What is the role of each level of government?)

Both database are of public domain on the website and updated versions are released twice a year

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EX-ANTE EVALUATION OF THE CSF 2000-2006

Why RPA

Structural demand absence of systematic, updated financial

accounts for all italian regions

fragmentary and no systematic nature of information available at territorial level;

lack of effectiveness and homogeneity of public statistical sources on regional flows.

Structural demand absence of systematic, updated financial

accounts for all italian regions

fragmentary and no systematic nature of information available at territorial level;

lack of effectiveness and homogeneity of public statistical sources on regional flows.

Short-term demand• to provide a structural solution to the

problems associated with verifying compliance with the principle of additionality of Community funds with respect to national resources (art. 9 of CEE Reg. 2082/93; art. 11 of 1260/99).

Short-term demand• to provide a structural solution to the

problems associated with verifying compliance with the principle of additionality of Community funds with respect to national resources (art. 9 of CEE Reg. 2082/93; art. 11 of 1260/99).

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Today

Today the RPAs are a tool for the analysis of public policy, with many other multiple objectives:

measure and analyse the allocation of public expenditure between the South and the Centre-North of the country and among individual regions;

measure and analyse the breakdown of public capital expenditure between investment and transfers;

measure and analyse the sectoral composition of capital expenditure for investment and provide a reference base for analysing the effectiveness of that expenditure

From 2005 the RPAs are a product of Italy's National Statistical System (SISTAN), the network of public and

private entities that provide official statistical information.

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Today

• comprehensive;• flexible;• territorially detailed.

The RPA database provides information on revenues and expenditures (on current and capital account) of government entities in the individual Italian regions. The database is

Tables with regional information extracted from the RPA database are of public domain on the website (http://www.dps.tesoro.it/cpt-eng/cpt.asp). The RPAs provides annual data with a lag of about 12-18 months.

Visitors, following a guided search process, can select tables prepared on the basis of a number of access criteria: expenditures, revenues, sectors of intervention, economic categories, level of government – for both the public sector and general government.

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National Evaluation

Unit(coordination)

NATIONAL EVALUATION UNIT + ALL (21) ITALIAN REGIONS

Organisation: a multi actor system to put together national and local information

RegionalTeam

RegionalTeamRegional

Team

Regional Team

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National Eval. UnitAnalyses data from the

allowing bodies:

Regional TeamsAnalyse data from the

allowing bodies:

Region Regional Authorities Municipal Companies Ports Chambers of

Commerce Local management

companies

Central State Hospitals Health Clinics Counties Municipalities Universities Retirement and social

benefits services Authorities for

Electricity, Public road management etc.

RPA building

Data validation

RPA data base

RPA data base

Role of different actors

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Consolidate account of the public sector at regional level at the time T-2

What is the output

RPA

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What is the output

RPA

It is a financial “real” account; it means there are no data reclassifications or estimations.

The nature of the data is financial: the reconstruction of financial flows is therefore usually based on the final balance sheets of the bodies considered.

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What is the output

RPA

A process of consolidation needs to be undertaken.

Each body is considered, by way of elimination of intermediate flows between the various levels of government, as the final agent of expenditure.

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What is the output

RPA

Public Sector

To determine financial flows in each region, the field of reference considered by the RPA is comprised of the so-called Public Sector, a term borrowed from the definition of “Public Area” used by the E.U. for the verification of compliance with the Additionality Principle and divided into two large components: the component defined as “Public Administration” and that defined as “Non-Public Administration”.

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What is the output

RPA

Consolidate account of the public sector at regional level at the time T- 2

PUBLIC SECTOR

PAPS

FIN

AN

CIA

L F

LO

WS

(e

xp

en

dit

ure

s a

nd

re

ven

ues)

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THE PUBLIC SECTORYear 2003

Public Administration Non-Public Administration Sector

Central Public Administrations State Monopoly firmsState Special or Municipalised CompaniesSocial Security Authorities National Flight Assistance AuthorityANAS (National Road Works Company) ENEL (National Electricity Board)Other agencies of the Central Administration ENI (Energy Sector)

Italian Tobacco AuthorityDecentralised Public Administrations State RailwaysRegions Italian PostAuthorities subordinate to the Regions Ex-IRI (Institute for Industrial Redevelopment) agenciesLocal Health Authorities Companies owned by the RegionsPublic HospitalsProvincesMunicipalitiesMountain CommunitiesProvincial Tourism AuthoritiesIndependent Agencies for Public HousingUniversitiesUniversity Student Assistance FoundationsLocal Authority Autonomous Consortia

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All local public utilities

THE PUBLIC SECTORYear 2003

This component is not examined in a comprehensive manner by any other source than RPA/DPS database

absolute monopoly

2.200 new bodies

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What is the output

RPA


A regional account is realized for each italian region.

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Time lag depends on the financial nature of data: final accounts of the entities considered on a cash basis.

In order to provide even more timely information that can be used to analyze current developments, the Department for Development Policies has created a statistical indicator for public capital expenditure that has a lag of just 3 months.

What is the output

RPA


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Data is organized by…

Defined as data keys

Highly flexible and detailed data base

• Year (starting 1996 to 2003)• Sector of activity• Regional detail• Level of government• Source of expenditure

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Current uses of the RPAs

1. Monitoring development policies

2. Supporting decisions of policy makers

3. Improving studies and analysis of regional impacts

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Financial monitoring of public investment at territorial level

objectives for policy makers

establish reference values for public inputs to use in assessing the outputs and outcomes of expenditure and policy-making

ascertain whether policies have been pursued appropriately where expenditure or certain components of expenditure are the result of policy decisions

identify the types of expenditure that are most successful in generating synergies among financing from different sources

understand the variables behind the territorial distribution of expenditure, I.e. identifying the determinants of expenditure levels

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objectives for analysts

Improve the quality and availability of government statistics to:

support the basic policy objective of increasing growth in all regions and reducing persistent growth gap between areas

adequately reflect the changes under way at the territorial level, providing data appropriate to information needs and sufficiently frequent updating

meet the requirements of the relevance, integrity, quality and accessibility of information

Regional information on public financial flows is an essential need

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• Monitoring development policies /1

How is government expenditure distributed around the country?

How to use RPAs database for

71,6%

28,4%

North-Centre

South

71,6%

28,4%

Capital expenditure and the territory: the role of investment and transfers

242 410

570669400

600

800

1000

1200

1400

1600

1800

North-Centre South

Investment Trasfers

981911

Is there a different policy mix in South and North?

5.000,0

10.000,0

15.000,0

20.000,0

25.000,0

30.000,0

'96-'98 '99-'01 '02-'03 '96-'98 '99-'01 '02-'03

Investment TransfersNorth-Centre South

74,3

%

25,7

%

72,6

%

27,4

%

26,3

%

73,7

%

58,6

%

41,4

%

57,7

%

42,3

%

57,4

%

42,6

%

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• Monitoring development policies / 2

Capital expenditure and areas of intervention: priorities


Capital expenditure and levels of government: who, how and how much

average 1996-1998 (millions of 1999 euros)

588 737 791

901206

149 8635

149

334

900

1,099 1,3511,922 1,884

3,2302,548

1,013

2,909

1,473

2,840 1,637 1,468

151

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

South North-

Centre

South North-

Centre

South North-

Centre

South North-

Centre

South North-

Centre

South North-

Centre

InvestmentTransfers

Industry

and art.

Res. Building

and urban dev.

EnergyGeneral Admin. Other

Transport

Roads

2,736

1,638

2,819

997

2,0711,970

3,381

1,508

3,058

1,347

3,448

24%

37%

19%

22%

34%

26%

23%15%

0%

20%

40%

60%

80%

100%

Central Gov. Regional Gov. Local Gov. Public sector entities

Public sector: capital expenditure by level of government

South

2.000

4.500

7.000

9.500

12.000

14.500

96-98 avg. 99-'01 avg. 02-'03 avg.

Central Gov. Regional Gov.

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• Supporting decisions of policy makers /1How to use RPAs database for

Monitoring the italian policy mix

Principle of additionality of Community funds

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31

33

35

37

39

41

43

45

47

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Qu

ote

pe

rce

ntu

ali

DPEF – JUNE 2003

MEASURED VALUES PLANNED VALUES

Ratio of capital expenditure in the South: measured and planned values

Cosa pensavamo nel 1999

Previsione ex ante - QCS 2000-2006

Cosa pensavamo nel 1999

Previsione ex ante - QCS 2000-2006

Cosa pensavamo ieri

Revisione della previsione aprile 2004

Cosa pensavamo ieri

Revisione della previsione aprile 2004

Cosa pensiamo oggi

Revisione della previsione giugno 2004

Cosa pensiamo oggi

Revisione della previsione giugno 2004

-3,49-3,49 -4,77-4,77

19591,5 18907,3 18656,7

Fondi strutturali

Cofinanziamento

Risorse aree sottoutilizzate

Risorse ordinarie

19591,5 18907,3 18656,7

Fondi strutturali

Cofinanziamento

Risorse aree sottoutilizzate

Risorse ordinarie

Componente ex post sempre più ampia

19591,5 18907,3 18656,719591,5 18907,3 18656,7

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• Supporting decisions of policy makers /2How to use RPAs database for

Allocation of public funds between regions

Economic planning documents

Verification of the economic policy rules for the development of the South

The goal is to ensure that the South receives 30 % of ordinary

resources and 45% of total capital expenditure (ordinary

and additional resources)

Which the relation between allocation of public funds and

economic complexity of different regions?

•Allocation for the evaluation units network

• CIPE resolution of the national financial law 2003 for monitoring

projects

•RPAs performance reserve

• DPS Annual Report

• DPEF

• Annual Report on the General Economic Situation of the Country RGSP

• Regional DPEF

• ………………..

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• Improving studies and analysis of regional impacts


Study session on the RPAsTo put together statistical methodology and economic policies

The feasibility and

sustainability of fiscal

federalism

The feasibility and

sustainability of fiscal

federalism

The principle of horizontal

equity in a federal context

The principle of horizontal

equity in a federal contextTerritorial effects of the

distribution of resources

Territorial effects of the

distribution of resources

The final outcome of

appropriations

The final outcome of

appropriations

The transformation of public

expenditure into services for

the public and infrastructure

The transformation of public

expenditure into services for

the public and infrastructure

Efficiency of the regional

public sector

Efficiency of the regional

public sector

An efficient database gave the opportunity to sustain, with a territorial focus, relevant policy questions

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FOR FURTHER INFORMATION

Website of the RPAs project http://www.dps.tesoro.it/cpt-eng/cpt.asp DPS Annual Reports, 2004 Annual Report on Actions in Under-Utilised Areas, available at http://www.dps.tesoro.it/eng/english_corner.asp

S. De Luca, F. Nusperli, A. Sferrazzo, A. Tancredi, M. VolpeMeasuring the results of public intervention: data for evaluating the territorial impact of policies, Materiali UVAL, Issue 6 available at http://www.dps.tesoro.it/materialiuval/indice_eng.asp

F. Barbaro, C. Carlucci, F. David, S. De Luca, R. Di Manno, F. Nusperli, A. Tancredi, F. Utili, M. Volpe The public capital expenditure Indicator: the annual regional estimate (extract) Issue 1 Materiali UVAL, Issue 1 available at http://www.dps.tesoro.it/materialiuval/indice_eng.asp

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