The resources will be distributed between the confirmation of the tax wedge cut, the merging of the first two Irpef rates, renewal of PA contracts, but also refinancing of reliefs on fringes and productivity bonuses
With a 28 billion euro package of measures in the maneuver 2024the government is betting half on Italians’ paychecks.
The budget law is in fact 28 billion euros, with extra deficit coverage of 15.7 billion to which are added 5 billion from budget cuts, another 2.5-2.6 billion from the remodulations of expenses brought forward to 2023 and , 4 billion ‘saved’ by the tax reduction fund: the resources will be distributed between the confirmation of the cut in the tax wedge, which costs 10 billion, to which 4.5 billion are added for the merging of the first two Irpef rates. Another 5 billion are intended for the renewal of public administration contracts, to which approximately 1.2 billion are added for other resourcesincluding the war in Ukraine, the refinancing of missions abroad and the refinancing of relief on fringes and productivity bonuses.
The path of the maneuver leaves little room for maneuver, which is why the government asked parliamentarians not to present amendments.
Privatizations, the funds that will enter the state coffers
From privatisations, which should bring 1% of GDP into the state coffers in the three years of planning of the budget law, the first tranche of revenue could arrive in 2024 from the sale of Ita. ”Paradoxically, I think, in 2024, I will finally be able to cash in on the reduced availability that should come from the privatization of Ita that we have done,” states the Minister of Economy, Giancarlo Giorgetti, during the press conference held at the palace Chigi after the green light for the maneuver. ”I hope that by the end of October” the EU will give the green light on the ”possibility of finalizing the operation”. Therefore ”this first privatization could close in 2024”. The MPS operation should also be closed next year, while for others ”there are complex technical steps that take time”.
“Ambitious program, great seriousness”
“We have an ambitious program”, explains the minister. “We are not holding back, even on delicate and sensitive matters we will take the decisions we have to take with the attitude that the ministry had for the budget law and privatizations” with ”great seriousness”.
Seriousness that is applied to the entire budget law, together with prudence, as reiterated by Giorgetti. A strategy that has already borne fruit for this year, as demonstrated by ”the performance of the Italian public accounts” which was “exceptional” net of the superbonus which ”continues undaunted at the rate of 3 billion in higher overall spending ‘year’. For this reason there are no measures that concern the invoice discount for next year, nor are there any interventions that fall under the umbrella of ”fiscal peace”.
According to the minister, the measure ”has slapped all ministers in the face for the benefit of Italians who earn medium-low incomes” and is therefore ”demonstration of the type of conscience that the entire political class that is currently in government has of the country”. Despite the government’s commitment to bringing the country back on a virtuous path, there are ”variables which, at this moment, cannot be pondered but imaginable” which we ”monitor”, but which do not depend on the government, including the conflicts between Russia-Ukraine and Israel-Palestine.
In particular, as regards the energy sector ”the forecasts were in favour” for a return to normalization of prices, therefore the end of subsidies was foreseen in 2023. ”It is clear that the situation could turn negative sense compared to the wishes”.