That instrument further prohibits each county, city, town and village from lending its credit and from creating an indebtedness in excess of 10% of the assessed valuation of its real estate.
The indebtedness of a county, municipality or school district is limited to 5% of the value of its taxable property.
The bulk of this indebtedness has been contracted for the purpose of constructing railways, tramways, water-supplies, and other revenue-producing works and services, and it is estimated that only 8% of the total indebtedness can be set down for unproductive services.
The Italian local authorities, communes and provinces alike, have considerably increased their indebtedness since 1882, The ratio of communal and provincial debt per inhabitant has grown from 30.79 lire (~1, 4s.
At the same time the chief lines of railway which had been built by public companies with a state guarantee, and which represented a loss to the empire of £3,171,250 per annum, as well as a growing indebtedness, were bought by the state.