Italy parliament gives final approval to 2022 budget

Rome: The Italian Chamber of Deputies on Thursday passed the government’s 2022 budget, giving final approval to the package which targets the fiscal deficit to fall to 5.6% of national output from 9.4% this year.

The budget reduces income and business tax by some 7.5 billion euros ($8.49 billion) in 2022, lowering the number of income tax bands to four from five at present.

The deficit is seen narrowing thanks to strong economic growth and the end of stimulus measures adopted at the height of the coronavirus crisis to soften the hit to families and firms.

The lower house passed the budget by 355 votes to 45 just one day before the end-year deadline. It was approved in the Senate last week.

Among the other measures, the budget sets aside almost 4 billion euros to lower utility bills amid soaring international energy prices and extends generous subsidies on energy-saving home improvements.

The budget assumes Italy’s gross domestic product will grow by 4.7% in 2022, slowing from an official target of 6.0% this year. Italy’s public debt, proportionally the highest in the euro zone after that of Greece, is targeted to fall next year to 149.4% of GDP from 153.5% in 2021.