Institutional portal - Municipality of Milan

The economic management plan has been approved pending the change. Tasca: "Difficult situation for accounts, forced to contain expected spending"

Milan, 3 April 2020 - The Council approved the PEG (Economic Management Plan) which, on the one hand, implements the budget approved by the City Council last March 5, on the other introduces some revisions of the spending commitments contained in the 2020-2022 Budget, in relation to the CoViD-19 emergency. The impact of the Coronavirus on the decline in revenue and on the new support needs for citizens and businesses forces the Municipality to remodulate spending in every sector of the Administration, with the constraint of not exceeding 78% of the expected budget.

"With today's resolution - explains the budget councilor, Roberto Tasca - we have restricted the management's margin of maneuver in expenditure planned by the budget, approved before the emergency, which cannot be postponed or urgent. We are in a difficult situation for the keeping accounts and we have the duty to monitor the balances on a daily basis. We are making estimates of the economic losses, which at the moment are not yet complete, to proceed in the next few weeks with a budget change that guarantees the balance. It being understood that it remains an operation difficult for the Municipality of Milan and for the Italian municipalities to get out of this situation without additional interventions on the part of higher bodies".

The main measure adopted by the Council states that each Directorate will not be able to spend more than 78% of its 2020 budget, with the exclusion of appropriations tied to revenues with specific destination and those relating to mandatory funds and provisions and interest expense.

Furthermore, the limitation on the adoption of expenses relating to transfers and current account contributions not referable to social emergencies or mandatory based on conventional charges comes into force.

Also notable is the introduction of a limit on making spending commitments on budget allocations for subsequent years, without a prior direction from the municipal council.