Breakdown of the 2023 Municipal Solidarity Fund: payment will be made in two installments

The 2023 Municipal Solidarity Fund issued by decree of the President of the Council of Ministers on June 13, 2023, was published in the Official Gazette number 156 of July 6, 2023, outlining the criteria for the formation and allocation of resources intended for municipalities for the year 2023.

What is the Municipal Solidarity Fund (FSC)

The Municipal Solidarity Fund (FSC) constitutes the fund for financing Italian municipalities. It is a fundamental part of the resources that the Italian fiscal federalism system allocates to municipalities in the ordinary statute regions (Rso) and to those in Sicily and Sardinia.

It is an equalization fund to compensate for disparities between territories and, more generally, a mechanism that regulates the distribution of resources among municipalities.

The composition of the Fund for the year 2023 is given by the share due to municipalities for the Municipal Property Tax (IMU), which amounts to 2 billion and 768,800,000 euros, decreased by the share of lower Tasi revenues and increased by the shares referred to in article 1, paragraph 449 of law 232 of 2016.

The solidarity fund was allocated to the municipalities of the ordinary statute regions based on the percentages already applied for the year 2022. The municipalities of the regions of Sicily and Sardinia, also for the year 2023, will benefit from different percentages based on those applied to them for the year 2022.

The reserve quota, including any adjustments for individual municipalities, has been set at 7 million euros charged to the FSC. The method for calculating the reserve has been applied proportionally to the resources given to individual municipalities.

It will also be possible for the year 2023 to offset credit or debit amounts based on the deductions applied to individual municipalities or those resulting from article 7 of decree law May 31, 2010, number 78.

Disbursement of resources for the year 2023

For the year 2023, the Ministry of the Interior, Central Directorate of Local Finance, will disburse to each municipality the amount allocated as a municipal solidarity fund in two installments, paid respectively by May 2023 for the first and October 2023 for the second. The first installment, equal to 66% of the total funds, will in any case be disbursed within the limits of the cash availability relating to the Municipal Solidarity Fund.

As stated in the official press release of the Presidency of the Council of Ministers, the payment orders were sent to the Control Office of the Mef (U.C.B. at the Ministry of the Interior), through the “Sicoge” System, for forwarding to the Bank of Italy and subsequent crediting to the municipalities.