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di redazione
Roma,
9 Ottobre 2012
The Italian government in the early hours of Wednesday adopted the draft budget for 2013 as well as the budgetary Stability Law for the period of 2013-2015. It will allow the government to reach its objective of a balanced budget in structural terms in 2013 while providing some room to support low-income families and economic activity and employment overall.The budget is based on a second-round of structural cuts (€3.5 billion), regarding the purchase of goods and services, including in the health sector, according to the principle of better spending taxpayers’ money. This adds to the other permanents savings totaling €26 billion for the 2012-2014 period that were identified in July’s first spending review exercise. The cuts, which preserve carefully the quality of public services, enable the government to limit the increase in the VAT rates to one percentage point to avoid depressing economic activity further (In September 2011 it was decided to increase the low VAT rate from 10% to 12% and the standard rate from 21% to 23%. The increase was initially due on October 1st 2012). The budget also tables on a tax on financial transactions, currently being introduced with 10 other euro area countries, including Germany and France. Technical fiscal provisions in the banking and insurance sector are also increased.With the expenditure cuts the government will notably support the achievement by the social partners of much-needed productivity increases (productivity-linked salary increases may be de-taxed to the extent of €1.6 billion over 2013-2014); cover for the temporary effects of the pension reform (‘esodati’); reduce the backlog of late payments by the public administration; and finance investment. To alleviate low-income revenues and give some relief to domestic demand, personal income tax (IRPEF) is lowered to 22% from 23% for revenues up to €15,000 a year and to 26% from 27% for revenues between €15,001 and €28,000.
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