The 2025 Budget Law poses significant challenges for the government, necessitating a structural budget plan by September 20th.
This plan will outline expenditure policies, related coverage, and any reforms to be implemented over the next four years.
The government faces tough decisions due to the need to cut €12 billion in public spending annually for the next seven years.
This restriction compels the upcoming 2025 Budget Law to refrain from using debt to finance measures.
The projected cost of the 2025 Budget Law is around €24 billion, requiring credible coverage to avoid rejection by Brussels.
Finding these funds is a pressing issue for Minister Giancarlo Giorgetti, given the limitations on debt financing.
Despite initial reluctance, tax revenues might play a crucial role in financing the budget.
Surpassing expectations in 2024, fiscal revenues could offer a substantial surplus, potentially between €16 to €20 billion.
The proposed 2025 Budget Law, with a targeted expenditure of €24 billion, aims to keep the Ministry of Economy within this limit.
However, parliamentary pressures may inflate this figure, further challenging budget constraints.
To bridge the remaining funding gap, the government considers options like departmental spending reviews, yielding €2.5 billion, alongside cuts to tax deductions and potential fiscal amnesties.
Despite efforts to generate revenue through amnesties and deductions, past outcomes have fallen short.
Such financial maneuvers may only serve to extend existing measures, delaying broader reforms pledged during the electoral campaign.
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