The Fiscal balances differ in respect of the area of reference and of the accounting criteria
Below is a list of the characteristics of the main balances.
The general overall framework of the
Budget refers to the following differential results.
Public savings, namely the balance of the current portion of the profit and loss
account, obtained as the difference between current revenues (taxes and other revenues) and current
The net debt (or credit), namely the balance of the profit and loss account,
resulting from the difference between the final revenues, net of the collection of receivables, and
final expenditures, net of the acquisition of financial assets. .
The net deficit (or surplus) that is the result of the difference between the
final revenues (first three titles of the revenues) and final expenditure (first two titles of
Market-based financing, which is equal to the difference between the final
revenues and overall expenditure (inclusive of expenditure for loan repayments).
The cash account of the State sector originates from the consolidation between
flows generated by the State Budget and those related to the management of the State treasury.
The management of the treasury tracks the deposits and withdrawals of the current accounts and
special accounting in the name of the various Administrations and delegated structures.
The balance of reference is the financial requirement (or availability) of the State sector that
measures the surplus of payments over receipts (or the opposite) with reference to all current
capital operations and financial transactions.
cash account of the public sector is the result of the consolidation of the cash
accounts of the various subsectors (State, Regions, Health, Municipalities and Provinces, Social
Security bodies and other bodies).
The balance that summarizes the information contained in the account is the
financial requirement (or availability) of the public sector resulting from the
difference between final receipts and final payments, which represents the main component of the
annual variation of the public debt stock.
The Profit and Loss Account of the Public Administrations is drawn up in
compliance with the rules set out in the Manual of the European System of Accounts
The principle adopted in the accounting system is the accrual principle even though for some
items the cash system can be used because it is considered to be more significant.
The differential balance that summarizes the account is the
net debt (or surplus) given by the difference between total final revenues and
total final expenditures.
This balance is the numerator in the deficit/GDP ratio calculated to check compliance with the
3% ceiling introduced by the Maastricht Treaty.