Def, Giorgetti: “Cautious on GDP, but we aim for higher growth”. Ministries spending cuts rise to 1.5 billion in 2024
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MILAN – The GDP estimates of the Def are of an “extremely prudential nature, being aimed at the elaboration of budget projections inspired by caution and reliability”. Thus the Minister of Economy Giancarlo Giorgetti in the introduction to the Def, the document approved on Tuesday in the CDM and now published by the MEF. However, adds Giorgetti, “it is entirely realistic to aim for an increase in the growth rate of GDP and employment in the coming years that goes well beyond the forecasts of the Document, along a path of innovation and investment under the banner of the ecological transition and digital and the development of infrastructure for the transmission of clean energy and sustainable mobility”.
Ministries spending cuts of 1.5 billion
Among the elements that emerge from the document is a new cycle of spending reviews: in the Def the government indicates the target of further “contributions to the next public finance manoeuvre” by the ministries “with spending savings in terms of net debt equal to 300 million in 2024, 500 million in 2025 and 700 million from 2026” . The reductions “add to what was already provided for in the previous budget law, bringing the overall reduction to 1.5 billion in 2024, 2 billion in 2025 and 2.2 billion starting from 2026”. The distribution between the ministries will be established with the Dpcm, “with a resolution of the Council of Ministers, by 31 May”.
With the 3 billion of the Def, the cut in the tax wedge doubles: benefits of up to 80 euros
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The review of bonuses on the house
Giorgetti then returns to the topic of tax credits linked to construction, after the stop to the sale and the discount on the invoice taken in mid-February. “The first objective is to gradually overcome some of the extraordinary measures implemented in the last three years and identify new interventions both to support the most vulnerable subjects and to relaunch the economy”, writes the head of Finance. Precisely on building bonuses, “the normalization of budgetary policy” also passes through the revision of incentives such as Superbonus and facade bonuses, which have had a draw “significantly higher than estimates”. For this reason, the government intends to “review the whole matter of building incentives” by combining efficiency with the sustainability of public finances and distribution equity.
Wedge cutting soon
The document confirms what was anticipated by the Palazzo Chigi press release, namely that the new provision will soon arrive which allocates around 3 billion to cut the wedge for medium-low incomes in the months of May-December. Meanwhile, a treasure trove emerges for 2024 for an improvement in the estimates of the trend deficit which free up 0.2% of GDP, about 4 billion. “In the face of an estimated deficit trend for the current year of 4.35 per cent of GDP, maintaining the existing deficit target (4.5 per cent) will make it possible to introduce, with a forthcoming regulatory provision adoption, a cut in social security contributions paid by employees with medium-low incomes of over 3 billion for this year. This will support the purchasing power of families and contribute to the moderation of wage growth”, says Economy Minister Giancarlo Giorgetti in the introduction to the Def. “Together with similar measures contained in the budget law, this decision demonstrates the Government’s attention to protecting workers’ purchasing power and, at the same time, to wage moderation to prevent a dangerous wage-price spiral”, he adds.
The Superbonus weighs on the debt: “It will go down in 2025”
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Pnrr, “review projects and accelerate”
“The launch of the Pnrr was affected by the complexity and innovativeness of some projects, by the price increases and the shortage of components and materials, as well as bureaucratic slowness – acknowledges Giorgetti – However, new interventions have recently been implemented to reorganize the management of the Pnrr and adjust the procedures. Once the revision of some project lines has been completed, there are all the conditions to accelerate the implementation of reforms and investments that will produce not only favorable socio-economic impacts, but will also raise the growth potential”.
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