The economics and economic policy of regional fiscal residuals

Abstract

The work examines "Economy and economic policy of the "regional tax systems"", bringing in relation the territorial dimension with the relevant economic and institutional aspects. It is accomplished by subtracting from the total public expenditure that takes place in a territory, the amount of the tax revenue generated by the taxpayers resident in the same territory. It can be realized for public administration alone or including public enterprises; data of different accounting nature can be used. For the eight regions of the Mezzogiorno, Umbria and Friuli Venezia Giulia, the tax residue is certainly positive. Since 2008-09 the extent of fiscal, positive and negative residues has however been reduced, even sensibly, due to the increased impact in the Mezzogiorno of austerity measures (Di Caro e Monteduro 2017). The key point for economic policy is that redistribution by public action is not between territories but between individuals. In judgment 69/2016 he stated that “the tax residual parameter cannot be considered a specific criterion of the precepts contained in Article 119 of the Constitution”, which deals with the financing of regions and local authorities.

Keywords

Public finance; public expenditure; Half-day; Public health; Italy; Public administration

JEL codes

R58; H61; H77