The State and the territories

The Italian public sector is characterized by a moderate expenditure decentralization,associated with an highly centralized fiscal system. As a consequence, the State expendituresplay a fundamental role in determining the disposable resources at local level, interms of direct provision of public services, social protection and devolutions/transfers to localgovernments. Using the evidences of the State Accounting Office, this study analyzes thedeterminants of the regional distribution of the central government expenditures, showing ahighly significant, systematic an stable relation between per-capita expenditures and populationsize, associated with a redistributive component in favor of the less developed areas. Thisgeneral and equitable rule is violated in regions characterized by «special autonomy», i.e. localgovernments constitutionally in charge to cover fields of public intervention that are elsewhereduty of the State. Recent federalist reforms and the State budget restrictions partially modifiedthe observed abnormal condition, establishing more uniform resources distribution, alsoin terms of fiscal residua.