Description
The characterising element of the provincial financial system is represented by the responsibility that falls to the Province to find the necessary resources to finance the extensive spending powers, in relation to the correlation between the provincial budget revenues and the dynamics of the territory's economy.
In fact, provincial finance is mainly fed by devolutions of state taxes and by own taxes produced in the territory; the Province is responsible for
- (as a rule) 9/10 of State taxes (Irpef, Ires, Iva, etc.);
- derived own taxes (IRAP and regional IRPEF surtax);
- its own taxes that it may establish, within its areas of competence, in accordance with the principles of the State tax system (e.g. motor vehicle taxes).
The Province may also establish taxes and fees on tourism (tourist tax). On its own derived taxes, the Province can change the rates, both upwards and downwards, provide for exemptions, deductions and deductions, as long as they are within the limits of the higher rates defined by State legislation (a competence that has been widely exercised in recent years as an instrument for outlining public finance manoeuvres).
The Province has access to community resources, while ordinary state resources are limited to the co-financing of community programmes, financing from the Development and Cohesion Fund and financing of delegated functions. The Province does not participate in equalisation funds for territories with lower fiscal capacity and in funds aimed at removing economic and social imbalances (provided for by Article 119 of the Constitution). Only in the presence of disasters that cannot be dealt with by exercising its own competences or of events of international scope (e.g. Covid-19) or objectives of a national character (e.g. 2026 Winter Olympics) does the Province also have access to state resources.
The Statute also provides for the Province's contribution to the pursuit of national public finance objectives through a provision of resources from its own budget to be paid to the State. However, this contribution is exhaustive for all the entities of the integrated provincial territorial system (Province, local entities, instrumental entities, health authorities, universities, Chamber of Commerce, etc.). Correspondingly, the Statute attributes to the Province the responsibility for coordinating the finances of the aforesaid entities, as well as for defining for them measures to rationalise and contain expenditure, thus fully reaffirming its autonomy in expenditure policies and decisions concerning the allocation of resources.