Analyzing Municipal Sustainability with CPT Data: the case of Basilicata Region

The system of Territorial Public Accounts (CPT), developed and managed by the Department for Cohesion Policies and for the South of the Presidency of the Council of Ministers, is an important source of information for the analysis of public spending. Thanks to the sectoral classification and the harmonization of budget data, the CPT allow a detailed analysis of the spending behavior of entities belonging to the Broader Public Sector (SPA), including local authorities, making it possible to compare territories, monitor policies and develop evaluation tools based on official and consolidated data. However, their potential for measuring local sustainability remains underexploited when considering the growing attention to public sector sustainability reporting and the key role of local authorities in implementing the Sustainable Development Goals (SDGs) of the 2030 Agenda. This paper presents a methodology applied to the 131 municipalities of Basilicata that aims to connect the monetary data of the CPTs of the Basilicata Region with the sustainability dimensions outlined by the 2030 Agenda. The methodology involves the structuring of a connection matrix between the CPT expenditure items, reclassified by sector and divided on the basis of the budget programs (Legislative Decree 118/2011); the sustainability indicators defined by international standards and reference organizations, which allow the connection with the SDGs; the statistical variables available at the municipal level, aimed at defining indicators that reflect the sustainability of expenditure flows. The selection of sustainability indicators and statistical variables was guided by their coherence with the SDGs and limited by the availability of data at the municipal level. The main result of this work is the construction of a database for the Lucanian municipalities that enables two important analysis paths: 1) the identification of the relationship between the trend of local public spending (deriving from the CPT of the Basilicata Region) and the dynamics of sustainability indicators identified in the literature; 2) the identification and measurement of indicators that reflect the sustainability of spending flows. Framed in a broader research project, this preparatory work aims to provide local administrations with a crucial tool to improve their accountability and orient planning towards sustainability objectives. The constructed database represents the basis for the development of a longitudinal monitoring and evaluation system of the impact of local policies on the different pillars of sustainability, supporting the future drafting of sustainability reports.