The Role of the Ministry of the Economy and Finance

in Italian Politics
Author: David Hine
View More View Less
Restricted access

Economics and finance ministries are among the most important

departments of modern governments. Their overall purpose is to

plan, finance, and co-ordinate public expenditure along a sustainable

long-term trajectory. That role has several dimensions: assessing

departmental spending proposals; ensuring that spending delivers

value; delivering financial resources to meet spending; maintaining

a sustainable balance between fiscal revenues, asset disposals, and

borrowing; managing financial flows across a fiscal year; and ensuring

that these processes are compatible with sectoral policies and

with overall economic targets. The authority to do all this depends

on complex factors: the political backing the ministry gets from other

parts of the government from the prime minister down; the status of

the minister in charge; the compliance of the legislature and of subnational

authorities; the effectiveness of the fiscal, forecasting, authorization,

and inspection machinery; and the ministry’s own capacity

to develop, modernize, and improve the planning and management of

public expenditure programs generally.