Italy approved a “prudent” Budget with an expense of 35,000 million

This content was published on November 22, 2022 – 06:58

Rome, Nov 22 (EFE) it will be destined to help families and companies in the face of the increase in energy prices.

The first Budgets of the Government of Giorgia Meloni will be presented as a bill for analysis, eventual amendment and approval in Parliament before December 31, as requested by Brussels. The details will be given today by the Prime Minister at a press conference.

“The budget adjustment law is based on a prudent and realistic approach that takes into account the economic situation, also in relation to the international scenario, and at the same time sustainable for public finances, concentrating a large part of the available resources on interventions of support to homes and businesses to counteract expensive energy and rising inflation,” the final statement read.

The package will cause next year’s deficit to rise to 4.5% of gross domestic product (GDP) compared to 3.4% that had been forecast in September.

4.2 billion euros will be earmarked to reduce the tax wedge – the difference between the salary an employer pays and what a worker takes home – with the benefit going to low-income workers.

A single tax rate of 15% is also introduced for the self-employed with annual income of up to 85,000 euros, compared to the current limit of 65,000 euros.

Finally, the elimination of VAT for bread and milk was not introduced, but VAT will be reduced from 10% to 5% of feminine hygiene products and diapers and baby products.

A fund of 500 million euros has also been set up for people with low incomes up to 15,000 euros per year managed by the municipalities and destined to the purchase of basic necessities. These are a kind of “purchase vouchers” to be used at points of sale participating in the initiative with an additional discount offer on a basket of food products.

The Government of Meloni, despite what was promised in the electoral campaign, for the moment will not completely eliminate the so-called Citizenship Income, a subsidy for the unemployed approved the last legislature by the 5-Star Movement (M5S).

It will continue for people who, due to their situation, cannot access the labor market and are in a state of vulnerability, while it will last another eight months for those who can be employed and then it will be withdrawn. Its removal is scheduled for 2024.

While regarding the announced pension reform, also due to the lack of resources, a new plan has been chosen to anticipate retirement with respect to the current law that will allow people to stop working with 41 years of contributions and 62 years of age, a measure that according to the media would affect some 50,000 people.

There will also be a kind of tax amnesty for debts of up to 1,000 euros and the fractioning of unpaid tax payments in 2022 without additional penalties and interest for those who have been affected by the covid and high energy bills.

Likewise, there will be tax incentives for companies that hire women indefinitely, those under 36 years of age, and those who until now received citizenship income.

The budgets also included the measure to increase cash payments from the current 1,000 to 5,000 euros.

In 2023, the entry into force of the additional tax that was placed on plastic and sugary foods and drinks will be suspended.

In addition, with the aim of building the bridge that connects Sicily with the peninsula, the bill relaunches the company that had been created and had been liquidated. EFE


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Italy approved a “prudent” Budget with an expense of 35,000 million