Italy's parliament approves USD31B government budget for 2025
Date
12/30/2024 8:18:36 AM
(MENAFN) Italy's parliament approved the government’s 2025 budget on Saturday, allocating about 30 billion euros (USD31 billion) in tax cuts and social security contributions aimed at supporting low-income citizens. The budget, championed by Premier Giorgia Meloni and her far-right cabinet, passed the Upper House with 108 votes in favor and 63 against, despite significant criticism from the center-left opposition, which argued the package fell short of Meloni’s promises to reduce taxes broadly and boost employment.
Premier Meloni defended the budget as balanced and designed to support low and medium-income earners, families with children, and the health system. She emphasized that the limited available resources were used to strengthen and expand key measures from previous years. One highlight of the budget is a 1,000-euro bonus for parents of newborns, excluding wealthier families, as part of a broader effort to combat Italy’s declining birth rate.
The budget also targets banks, which have benefited from years of high profits due to falling interest rates. They are expected to contribute 3.5 billion euros to fund the country’s struggling national health system. This measure is part of a wider effort to address long-standing issues within Italy's healthcare infrastructure while maintaining fiscal responsibility.
Italy faces pressure from the European Union to reduce its budget deficit after significant increases in 2022 and 2023. The government has committed to lowering the deficit below the EU’s 3 percent of GDP ceiling by 2026, balancing ambitious domestic measures with stringent fiscal targets.
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