31 December 2006

Controlling the cost of public expenditure

Criticism of the Finance law particularly by foreign economic newspapers has been mainly about the failure to reduce the cost of public expenditure.
The containment of the costs of the State machinery is an absolute necessity to restore competitiveness to the system that is this country.
This is why the Ministry of Infrastructure is planning a reduction of the expenditure of about 40.6% of the total that was previously spent by the administration.
The cut in costs has been communicated by the Ministry of the Economy, to put into practice the regulations for the containment and the rationalization of public spending laid down in last July’s Bersani-Visco decree that was converted into a law in August.
The aim of the regulation is to proceed to the solid action of reducing public expenditure by means of the suppression of organisations that are no longer useful and the elimination of organizational duplication within the Ministry of Infrastructure. The result goes beyond the threshold of 30 per cent that was laid down.

Posted by Antonio Di Pietro in Reducing the costs of politics