ROME (ITALPRESS) – Economy and Finance Minister Giancarlo Giorgetti today presented to the Council of Ministers the adopted Medium-Term Budget Structure Plan, with data updated in light of the national accounts revisions released by Istat last Sept. 23 and after discussions with social partners last Wednesday. In particular, the Plan confirms the trajectory of net primary expenditure (a new single indicator subject to Commission surveillance), which will have an average growth rate of close to 1.5 percent over the next 7 years (the reference time horizon), consistent with the profile estimated by the Commission.In detail, the projected net primary expenditure growth rates are: 1.3 percent in 2025; 1.6 percent in 2026; 1.9 percent in 2027; 1.7 percent in 2028; 1.5 percent in 2029; 1.1 percent in 2030; and 1.2 percent in 2031The Plan is inspired by a serious, prudent, and responsible line and, consistent with the action the government has been taking since its inception. Starting from an estimate of 3.8 percent of GDP for the current year (lower than the 4.3 percent estimated last April), the government aims to bring the deficit-to-GDP ratio to 3.3 percent in 2025 and 2.8 percent in 2026, which will allow it to exit the excessive deficit procedure.Also taking into account ISTAT’s revision of nominal GDP and the debt data compiled by the Bank of Italy, the debt/GDP ratio at the end of 2023 falls to 134.8 percent (133.6 percent minus offsets related to construction bonuses) from the previously estimated 137.3 percent. As already noted in last April’s DEF, the evolution of the debt-to-GDP ratio in the coming years, especially in the period 2024-2026, will continue to be strongly affected by the impact on cash requirements of the tax offsets related to the construction Superbonus introduced from 2020. The debt-to-GDP ratio, therefore, will only begin a downward path from 2027, in line with the new rules that require it to fall, on average, by 1 percentage point of GDP following the exit from the excessive deficit procedure.The Plan contains a relevant set of reforms and investments, some of which are in continuity with the NRP. This confirms the government’s determination to work toward improving the competitiveness of the Italian economy, promoting sustainable growth and countering demographic decline. At the same time, support for the purchasing power of wages and commitment to the implementation of the enabling act on tax reform, including intensifying the effort to recover tax revenues, is confirmed. The document will be submitted to Parliament in the coming hours.
– Photo Agency Photogram –
(ITALPRESS).
