Italian Prime Minister Giorgia Meloni Stated that the government will spend two-thirds of the additional budget. To help businesses and households survive in the event of record fuel and electricity costs. The new budget of 30 billion euros will add about 75 billion euros to the budget approved by the previous Italian government.
To deal with rising energy prices as well Reuters also reported that This increase in budget will come from borrowing. But the government is expected to tax windfall on profits from energy firms benefiting from soaring oil and gas prices. This will add another 3 billion euros in revenue.
Before announcing this new additional budget The new cabinet raised its 2023 deficit target to 4.5% of gross domestic product from the 3.4% target set by the previous government led by former prime minister Mario Draghi.
The ongoing energy price crisis from Russia’s invasion of Ukraine As a result, the Prime Minister of Georgia Meloni and her allies will not be able to fulfill some of the promises they made during the election campaign. This includes many types of income tax reductions.
“We cannot do everything at once,” Industry Minister Adolfo Erso said on Sunday. Past attempts to do so ended in disaster.”
To avoid the situation that former Prime Minister Liz The British truss has experienced when announcing measures to stimulate the economy in a wide range As a result, the market fluctuated and she had to resign as prime minister. This prompted Italy’s new government to come out and say that its election campaign pledges, such as to change the pension system, had to be halted. or tax reduction for workers including other income taxes must be cut off from government policy first
However, Italy’s government under Prime Minister Melanie is committed to helping households hit by inflation in Europe that hit 12.6 percent in October. year on year The cabinet is now considering abolishing the sales tax for key necessities such as milk and bread.
While the project gives money to the people called “citizen wages” will be adjusted Those between the ages of 18 and 59 who are still able to work will no longer receive this money. But the government has reiterated that it will do so gradually next year.
When the Cabinet approves the budget Parliament will have until Dec. 31 to pass the law.