(MENAFN) The Italian cabinet approved the 2026 budget bill on Friday, unveiling an €18.7 billion ($21.8 billion) stimulus package featuring significant tax reliefs and targeted investments.

Prime Minister Giorgia Meloni outlined that €8 billion ($9.36 billion) will be directed to businesses, while €1.6 billion ($1.87 billion) aims to support families and encourage higher birth rates. "The package would allocate 8 billion euros for businesses, and 1.6 billion euros to support families and boost the national birth rate," she stated.

Middle-income households stand to benefit from a tax reduction valued at roughly €9 billion ($10.53 billion) over the next three years. Additionally, working mothers will see a slight increase in monthly benefits, rising from €40 ($47) to €60 ($70).

Healthcare funding receives a notable boost with an extra €2.4 billion ($2.81 billion), supplementing a pre-existing €5 billion ($5.85 billion) health investment fund. These resources are earmarked for wage increases for nurses in 2026, recruitment of 6,300 medical personnel and 1,000 doctors, and expansion of cancer screening programs.

The budget projects Italy’s public deficit at 2.8 percent of GDP in 2026, aligning with the European Union’s fiscal regulations that cap deficit-to-GDP ratios at 3 percent.

Before taking effect, the bill must undergo parliamentary scrutiny and secure approval from both chambers by year-end. (1 euro = 1.17 U.S. dollars)

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