OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Public Spending in Italy

Policies to Enhance Its Effectiveness

This paper aims to identify structural reforms for better public spending management in Italy –in turn a critical need in view of the country's high debt and tax burdens, notwithstanding significant progress in the past decade. The analysis proceeds on two distinct levels. At the central government level, a misallocation of public resources is suggested by excessive pension spending against inadequate spending in infrastructure, labour market and human capital areas, as well as by high and inefficient government employment. These problems can be traced in large part to the incentive structures built into the public institutions charged with the planning, implementation, and control of spending policies. The main recommended policy actions are to pursue further pension reform while strengthening other income transfers, make the budget process more transparent and accountable, undertake deeper reform of the public administration, and to make greater use of market instruments in areas ...


Keywords: public economics, structure and scope of government, local government, government expenditure, health, welfare programmes, Italy
JEL: H74: Public Economics / State and Local Government; Intergovernmental Relations / State and Local Borrowing; H72: Public Economics / State and Local Government; Intergovernmental Relations / State and Local Budget and Expenditures; H77: Public Economics / State and Local Government; Intergovernmental Relations / Intergovernmental Relations; Federalism; Secession; H5: Public Economics / National Government Expenditures and Related Policies; H11: Public Economics / Structure and Scope of Government / Structure, Scope, and Performance of Government
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error