Now it seems the decision has been made: to finance the budget law, the government will run more deficits. By creating more than 20 billion financial space, in the service of a maneuver focused on combating expensive bills. Three-quarters of the available resources will be allocated to this item, which is prioritized given the inflation trend in October, while the remaining 25 percent will be used for other measures ranging from a flat tax to pensions.
Solar hours between Saturday and Sunday: It will get dark earlier (and the lights will have to be on longer). A blow to the Bills
Next Thursday, November 4, the Council of Ministers will approve a new update note to the economic and financial documents (Nadef), including the programmatic situation, or the goals set by the new government for economic growth and public accounts. . In fact, the former executive developed the trend framework pending the expected transfer.
Some factors are yet to be defined in light of important data to come: one that Estat will provide on Monday, along with a preliminary estimate of GDP trends for the third quarter. A slight negative change is expected and this trend may continue till the middle of next year. But now the Ministry of Finance estimates an average increase of 0.6 percent in GDP in 2023, thanks to the restart of the second half of the year. As mentioned, the main objective of the Budget Act is to mitigate the impact of the energy crisis on households and businesses as much as possible. Three quarters of the resources will be utilized for this purpose. The overall size of the maneuver has yet to be defined, but it is hard to deviate from €40 billion. In fact, it may be slightly higher in the end.
How to find resources? Precisely Nadef has forecast a 3.4 percent deficit for next year, well above the programmatic target set at 3.9 percent in the spring. Half a point of GDP shortfall, or a 10 billion dowry, could have been recovered by the government without problems. But now Palazzo Chigi and Mef believe they can go further, bringing the deficit to 4.5 percent of GDP, 1.1 points above the original target. In this way, a very large amount is “liberated”, the equivalent of about 22 billion. Through an accounting system (advance of certain expenses) more funds can be diverted from what is available for the next decree to the next year, and anti-bill measures (especially for companies) that currently arrive in November. A contribution (around 4 billion) will probably come from reprogrammable European resources. This will result in approximately 30 billion coverages. Other measures will be required, starting with a review of the expenditure of the various ministries that Mef and Palazzo Chigi intend to strengthen.
More help thanks to Bills and VAT Income. Georgetti: “It’s the priority”. Stop pensions, Fornero “in the stairwell”.
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