In the final stages of the budget maneuver, technicians are working to refine the text and transmit it to the Chamber between October 20 and 22, in line with legal requirements. Premier Giorgia Meloni is expected to hold a press conference on Tuesday, coinciding with the anniversary of the start of her term as premier two years ago. One point still under discussion is the revision of deductions, with the government proposing a cap based on income brackets and the number of children. The goal is to combine the new deduction system with the income tax brackets.
Opposition parties have raised concerns about the impact of the deduction restructuring, particularly on single individuals and the elderly. Pd Secretary Elly Schlein has referred to the deductions as “disguised taxes,” while M5S Senate group leader Stefano Patuanelli has criticized the move as a “fiscal massacre.” There are worries that the proposed deductions, especially if they affect healthcare expenses, could disproportionately impact senior citizens. However, there is potential for a technical solution to prevent certain groups from being penalized.
The mechanism for banks to provide liquidity in advance, along with contributions from insurers, is still being finalized and is expected to generate 3.5 billion in resources. Additionally, there is consideration of utilizing the fiscal agreement as a source of additional funding for potential changes that may arise. While the budget maneuver is considered secure, Minister for Regional Affairs Roberto Calderoli has suggested that adjustments may be possible if the numbers align.
There is pressure within the majority coalition and from professional groups such as accountants and labor consultants to extend the concordat measure. A decree on fiscal matters addresses the substitute tax for entities participating in a concordat, with the legislation expected to be published soon and brought to the Senate. Various ministries are engaged in a stringent spending review to support the budget maneuver, with Minister Giancarlo Giorgetti of the Ministry of Economy and Finance having submitted proposals for spending cuts. However, adjustments may be made by individual departments to protect specific areas of expenditure.
Certain items, like the funding for universities and scholarships, may be preserved despite the overall spending reduction target of 5%. Finalizing the spending cuts for ministries may take longer than the budget’s presentation to parliament, which is expected to confirm the 5% spending revision across the board. The maneuver’s goal is to balance the budget while implementing policy changes, which has sparked debate and scrutiny from various stakeholders and political parties.
