It's an Italian Law (Law 468/1978) presented annually to the Parliament by the Minister of the Economy and Finance, together with the Budget Law. The Finance Act regulates the economic life of the country for a year, introducing rules about revenue and expenses and determining the public debt. The Finance Act must consider the European financial constraints due to the Fiscal Compact. Since 2009 it has been officially replaced by the Stability Law (Law 196/2009).
The Finance Act contains provisions aimed at achieving financial effects from the first year considered in the multi-annual budget and in particular:
- The maximum level of net borrowing and the access to the market for each of the years considered in the multi-annual budget ;
- The amounts of special funds in the current and capital accounts;
- The annual fees to be budgeted relating to permanent laws of expenditures;
- The total amount allocated to the renewal of contracts of public employment and for any changes in the treatment of non-contracted staff of public administrations;
- Other adjustments purely quantitative postponed to the budget law by the legislation in force;
- Changes in tax rates, deductions, taxes;
- The Government funding for a year of capital expenditure, if in the last financial year, these capital expenditure were provided in national budget; the Government funding of capital expenditure for one or more years to support the national economy, where required by law;
- Reductions of legislative expenditure authorizations for each year of the multi-annual budget;
- Regulatory changes that involve revenue increases or spending reductions;
- Increases in spending or revenue reductions intended to support or to revitalize the economy, excluding localist measures.
Editor: Giovanni AVERSA