The head of the Italian government Giorgia Meloni unveiled the main lines of her draft budget for 2023 on Monday evening. Two-thirds are devoted to the energy crisis, leaving little room for electoral measures.
The draft, adopted by the Council of Ministers, provides for more than 21 billion euros in support measures for households and businesses in the face of soaring energy prices, out of a total of nearly 35 billion euros in expenses.
The budget is “prudent and realistic” as well as “sustainable for public finances”, taking into account the economic situation, in particular international, assures the government in a press release. Among the measures are aid for the payment of electricity bills and enhanced tax credits for companies whose energy costs have continued to rise.
Deficit noted
To free up additional resources, Giorgia Meloni raised the country’s public deficit forecast for 2023 in early November to 4.5% of GDP, once morest 3.4% forecast in September by the government of Mario Draghi.
Flagship measure of the far-right coalition, the extension of a flat tax of 15% for auto-entrepreneurs with annual incomes of 100,000 euros instead of 65,000 currently, will be limited to 85,000 euros .
Tax reductions
Employees will benefit from tax reductions of 2% for incomes up to 35,000 euros per year, as under Mario Draghi, and 3% for salaries below 20,000 euros. In addition, companies that hire employees under the age of 36 will be able to benefit from tax exemptions.
Tax amnesties, which were among the electoral promises, were decreed in particular for tax debts of less than 1000 euros contracted before 2015.
At the same time, the ceiling for cash payments is increased to 5000 euros, once morest 2000 euros currently, a very controversial measure because it might, according to its detractors, encourage tax evasion and corruption.
retirement age
Another major measure, the advancement of the retirement age, which has been set for next year at 62, provided you have contributed for 41 years. Without this transitional measure, which might affect 48,000 people, the retirement age would have risen from 64 to 67 in 2023, as provided for by a reform dating from 2011.
To finance these measures, the Meloni government has decided to cut the citizenship income, an aid to the poorest perceived by 2.5 million people. Beneficiaries deemed able to work will thus receive this income in 2023 for only eight months, compared to twelve months for the others, and the system will be completely reviewed in 2024.
To increase tax revenue, the taxation of the ‘surplus profits’ of the energy giants introduced in March by the Draghi government will increase from 25% to 35%.
/ATS
