Italy will probably run a substantial budget deficit of 4.5% in 2023. Thanks to a more restrictive fiscal policy, the deficit will then reach an amount that the Italian government itself was counting on. This was reported by sources to the Reuters news agency.
The final financial expectations will be released next week by the Italian Ministry of Finance. A budget deficit of 3.7% is also projected to occur in 2024. Even that percentage is in line with the expectations that Italy had already published in November.
Both this year and next year, the budget deficit will therefore exceed the limit set by the EU by three percent of gross domestic product. However, the percentages are significantly lower than in previous years. In 2022, Italy had a budget deficit of 8%. This was mainly caused by the expansionary fiscal policy that the southern European country pursued at the time of the corona crisis and the start of the war in Ukraine. As a result, the country has been able to help businesses and citizens bear the high costs.
Make energy bills affordable
Although the expectations have already leaked, the figures can still change. Within Prime Minister Giorgia Meloni’s cabinet, negotiations on spending are still underway. For example, there are plans to spend money on making businesses and consumers’ energy bills affordable.
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
